[ad_1]
The Dow continues to rise today. It has soared more than 600 points after investors relaxed on volatility in the market caused by GameStop shares.
At 11:50 am, the Dow Jones Industrial Average stood at 30,816.49 points, plus 604.58 points or 2.0%.
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. Afterward, investors began to ease concerns about the GameStop phenomenon.
The stock price of GameStop, the popular US video game store, plunged 60 percent the day after a 30 percent drop last night, while it had previously skyrocketed significantly earlier.
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
Silver prices fell more than 7% today after the Chicago Mercantile Exchange (CME), the world’s largest commodities and futures exchange. Announces maintenance margin increase to stop retail investors’ price manipulation in the market.
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 February 18, while President Joe Biden’s economic team, including Janet, announced a hearing. US Secretary of the Treasury Yellen They also keep a close eye on the volatility of the US equity markets.
Meanwhile, investors are forecasting strong earnings forecasts for Amazon and Alphabet to be revealed today. In addition to being attentive to the progress of the issuance of US economic stimulus measures.
Amazon and Alphabet stock prices rebounded. 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. He is likely to try to push the measure through congressional approval. Despite protests from more than $ 1.9 billion from members of Congress, both Republicans and Democrats.
