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The Dow continued to decline today. The latest collapse of more than 600 points due to investors disappointing the results of the COVID-19 vaccine trial. Johnson & Johnson Company (J&J)
The Dow was also pressured by concerns about market volatility caused by the GameStop turnaround.
At 12:48 GMT, the Dow Jones Industrial Average stood at 29,947.28, minus 656.08 points or 2.14%.
Investors are concerned about J & J’s COVID-19 vaccine after the trial was shown. The vaccine was 72% effective against COVID-19 in the US, but was less effective in other regions.
The results also indicate that the J&J vaccine does not protect against COVID-19. South African species
J&J said results from a phase III vaccine trial with more than 43,000 volunteers found that 468 volunteers were infected with the COVID-19 virus. While some people are infected with B.1.351, the COVID-19 virus. South African species
The results of the experiment showed that the company’s vaccine was 66% effective overall, with an efficiency of 72% in the US, 66% in Latin America and 57% in South Africa after four weeks of vaccination.
The J&J vaccine can immunize the COVID-19 virus. With a single injection This is different from the Pfizer / Biotech, AstraZeneca / University of Oxford and Moderna vaccine, which requires two injections.
Share price of GameStop, the most popular video game store in the US, has risen more than 1,000% since the beginning of this month. It is seen as a gathering of American retail investors to preach the big hedge funds that often speculate by selling shorts in the markets.
The Investor Group at WallStreetBets This is a sub-board on Reddit, a forum with over 4 million members and a common place for retail investors to chat to exchange information about the market. Their goal is to boost GameStop’s share price to pressure the hedge fund to buy it back to cut losses. After it was shorted earlier, it was speculated that GameStop would soon be closing.
That small investor action has cost hedge funds billions of dollars.
Now there is concern as to whether GameStop shares continue to rise. It will cause the hedge fund to suffer big losses. As a result, these hedge funds will sell other stocks on the market to raise funds to offset speculative losses at GameStop.
There is also concern that the GameStop phenomenon is signaling a market bubble. That if the bubble bursts it will create panic and severely affected retail investors
Meanwhile, trading volumes have soared as investors flocked to GameStop shares, and Wall Street trading volumes surged more than 23.7 billion shares on Wednesday. It was higher than the highest level it had reached during the financial crisis of 2008, while yesterday the volume traded more than 1.9 billion shares.
GameStop’s stock price rose 70 percent the day after yesterday’s close with a 44 percent drop to $ 193.60.
Previously, GameStop’s stock price was trading at $ 2.80 per share in April of last year. At that time, the company announced that it would close more than 300 stores amid a huge debt crisis it faces.
Today’s rally in GameStop shares is due to online brokerage Robinhood. Which offers stock trading services through a free app. More than 13 million users of the service announced that it has unlocked GameStop shares, allowing investors to buy them on a limited scale. After yesterday the company issued a rule that restricts the trading of GameStop shares by setting a higher margin. And allow investors to sell the shares they own. But it won’t be able to buy new shares, and Robinhood said the move was meant to curb market price volatility.
“Start tomorrow We will allow investors to buy a limited number of shares. And we will continue to monitor the situation. And you can make adjustments to trading rules as needed,” said the Robinhood statement.
Robinhood stated that the company decided to limit the above commercial actions. To comply with U.S. Securities and Exchange Commission (SEC) regulations and protect investors.
Robinhood users filed a lawsuit in a US court yesterday after Robinhood prevented investors from buying GameStop shares.
Brendon Nelson filed the indictment in the United States District Court in Manhattan, stating that “Robinhood had deliberately blocked the shares of GameStop and intended to manipulate the market.” It breached the contract by refusing to disclose that the company was randomly removing profitable stocks from its trading platform.
Nelson claimed that Robinhood shares had cost him the opportunity to acquire GameStop shares as the share price soared.
Nelson also asked the court that Robinhood immediately unlock GameStop’s shares and pay compensation to investors.
Mr. Nelson’s attorney said: Hundreds of investors have also contacted the Robinhood prosecution.
Additionally, members of Congress both Democrats and Republicans both opposed Robinhood blocking GameStop’s actions.
US House of Representatives Nancy Pelosi said Congress would come together to investigate the rise in GameStop shares after it created volatility on Wall Street.
Ms. Pelosi’s attitude matched that of the White House. He also announced an increase in GameStop shares that have raised concerns about the market bubble.
President Joe Biden’s economic team, including US Treasury Secretary Janet Yellen, who took office for the first day on Wednesday said the government was monitoring the situation.
Mr. William Galvin, Massachusetts Secretary of State Requests that the New York Stock Exchange (NYSE) suspend trading in GameStop shares for 30 days to mitigate market volatility.
