Why has the stock market dropped?
Major indexes tumbled Thursday as high inflation, rising interest rates and growing concerns about corporate profits and economic growth dent investors' appetite for risk.
What is going on with stock market today?
Stock Market News Live: Stocks Finish Mostly Lower The S&P 500 fell about 0.4% on Tuesday, while the Dow industrials were down 0.5%. The tech-focused Nasdaq Composite was up 0.2%. Cryptocurrencies continued to drop, with bitcoin falling further below $23,000 as investors dumped their most speculative holdings.
How did Reddit crash the stock market?
An army of traders on the Reddit forum r/WallStreetBets helped drive a meteoric rise in GameStop's stock price in recent days, forcing halts in trading and causing a major headache for the short sellers betting against it and banking on the stock falling.
What happened to GameStop January 2021?
GameStop's stock price enjoyed gains through most of January 2021, but they exploded late in the month and peaked on Jan. 28, reaching a record high of $483. Shares of GameStop started the year at $19.
Did stock market go up today?
The Nasdaq leaped to a 2.5% gain, finishing Wednesday's trade at 11,099. The S&P 500 improved 1.5% to 3,789, while the Dow put up a 1.0% increase to 30,668.
Is stock market in bear market?
Traders work on the floor of the New York Stock Exchange (NYSE) on June 10, 2022 in New York City. Stocks fell into a so-called bear market on Monday, after an intense sell-off that saw the S&P 500 Index shed 3.9% and fall to its lowest level since March 2021. But just what is a “bear market”?
What happened with WallStreetBets and GameStop?
The army of millions of investors from Reddit's WallStreetBets community pushed GameStop shares from US$20 to US$480 during the January “short squeeze”, in which they drove hedge funds like Melvin Capital into heavy losses, after forcing them to liquidate massive bets against the stock.
What exactly happened with GameStop stock?
The company has been losing money for years as sales of video games increasingly go online, and its stock fell for six straight years before rebounding in 2020. That pushed many professional investors to make bets that GameStop's stock will decline even further.
What is GameStop scandal?
There's was also a lawsuit filed on Jan. 28 in the Southern District of New York accusing Robinhood of "purposefully, willfully, and knowingly removing the stock 'GME' from its trading platform in the midst of an unprecedented stock rise ... deprived retail investors of the ability to invest in the open-market."
How high can a short squeeze go?
If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.
How much did Melvin capital lose on GameStop?
Melvin, which lost nearly $7 billion early last year by betting on stocks like GameStop (GME.
How much money did investors lose on GameStop?
The gaming industry had its best year in 2020, but GameStop lost $215.3 million, following a larger loss the prior year.
Who is the billionaire investor who called the Redditors a pushback against the establishment?
On CNBC, billionaire investor Chamath Palihapitiya described the Redditors' actions as "pushback against the establishment." And of course, "the establishment" is quite unhappy with what they consider to be irresponsible trading. Prominent investor Michael Burry called the move "unnatural, insane and dangerous," per CNET, and others have analogized the Redditors' actions to a "Ponzi scheme."
How much is GameStop stock worth in 2020?
In April 2020, GameStop's stock was valued at a mere $3.25, and it was intending to close 450 stores in 2021. And now? As of January 29, GameStop's price is fluctuating a bit, but hovering around $200 per share (Apple is worth about $140 per share, for comparison).
Is the Securities and Exchange Commission monitoring the Reddit market?
The Securities and Exchange Commission (SEC) stated that they are "aware of and actively monitoring" the Reddit-inspired "market volatility," per NowThisNews.
Why is short selling risky?
If it rises, they have to repurchase the shares they borrowed and then sold for a higher price, which will make them lose money. This squeeze happens often, which is why short-selling can be risky.
What is a stock investor?
Plain and simple, they are investors who bet against a stock, hoping the price will fall. To do this, they borrow shares from someone who plans to stay invested for a long time, and then they sell the shares. After the stock price falls, they repurchase the shares at a lower price and return them to the lender.
What is market integrity?
Market integrity, as it’s known, is something regulators have to take seriously. If too many people lose faith in the market, they could stop investing, and that would prevent companies from selling shares to fund their growth. But we’re far from that. So far, these are pockets of volatility.
Who bought GameStop?
Last summer, Ryan Cohen, who grew and then sold online pet-food retailer Chewy, bought 13 per cent of GameStop and hoped to help management pivot into e-commerce. The stock quadrupled in four months, and that attracted short-sellers.
Fed approves rules banning its officials from trading stocks, bonds and also cryptocurrencies
Federal Reserve officials won’t be able to trade a slew of assets including stocks and bonds — as well as cryptocurrencies — under new rules that became formal Friday.
Stock market has "bottomed" 5 out of 5 times just right before the invasion... people need to calm down
Look at the last 5 major armed conflicts and how the stock market performed.
Stocks that are now cheaper than before Covid
It's really fascinating to see so many companies that have fallen sharply below their pre pandemic levels, despite having two years of growth behind them.
