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Dow Jones futures rose more than 200, indicating that the Wall Street stock markets will rebound tonight. Investors are forecasting strong results for Amazon and Alphabet to be released today. In addition to being attentive to the progress of the issuance of US economic stimulus measures.
The market was also driven by a drop in GameStop’s share price. After having risen much earlier AND creating volatility in the market
At 7:13 pm Thai time, Dow Jones futures were up 222 points, or 0.74%, at 30,332 points.
Amazon and Alphabet stock prices rose more than 1% in early trading today. Both companies will report results in 4Q20 after the market close today.
Among the S&P 500 companies that posted 4Q20 results, 84% reported higher than expected revenue and earnings figures.
President Joe. Biden met with Republicans at the White House yesterday to discuss the imposition of US economic stimulus measures. It is likely to try to push the measures. Despite protests from more than $ 1.9 billion from members of Congress, both Republicans and Democrats.
CBOE volatility index or CBOE volatility index (VIX), a measure of the anxiety of market investors. It fell to the lowest level in a week today. After investors began to dismiss concerns about volatility in the market caused by the rise in GameStop shares.
The share price of GameStop, a famous video game store in the United States. Falling Continuously It sank more than 30% to $ 158 in trading before the New York Stock Exchange today. After the close, the market fell 30.77% last night.
If GameStop’s share price opened today at $ 158. It would cause stocks to plummet 60% in just two days after the previous big jump.
GameStop’s stock price crash came as a group of Wall Street retail investors switched their target to silver to boost the price. After adopting a strategy similar to GameStop stocks to preach the big hedge funds they often speculate on short selling in the market.
Small investors flock to buy silver. As a result, the prices of silver contracts rose above $ 30 yesterday. Reaching the highest level in 8 years
GameStop’s share price rose 400 percent last week and soared 1.625 percent in January, driven by retail investors in the room. WallStreetBets With over 7.6 million members on the Reddit forum, 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.
GameStop’s stock price rally spawned large hedge funds. It is expected to reach $ 19 billion or about 570 billion baht.
If GameStop shares continue to rise It will cause hedge funds to sell other shares on the market to raise money and offset GameStop’s speculative losses.
There is also concern that the GameStop phenomenon indicates a market bubble. That if the bubble bursts it will create panic and severely affected retail investors
The volatility seen in the market as a surge in GameStop shares prompted the Financial Services Commission of the US House of Representatives to hold a hearing on market volatility related to the GameStop and others turnaround. The hearing will take place on February 18 when President Joe Biden’s economic team, including United States Secretary of the Treasury Janet Yellen, are also closely monitoring the volatility of the American stock market.
