U.S. stocks closed | Three major indexes rebounded, GME stock price fell 64% after the market rose more than 50%

Financial News

Written by: Yang Qian

2021-01-29 05:57

Last update date: 2021-01-29 07:11

The U.S. stock market rebounded from the previous day’s plunge on Thursday. The Dow Jones Industrial Average rose 600 points, or 2.0%, driven by stocks such as Disney and American Express.

The Nasdaq Composite Index, which reflects the performance of technology stocks, also rose 1.4%.

On the other side, a number of "short positions" stocks that have been turbulent for several days recorded intraday drops of more than 50% on Thursday.

However, after the market closed, the trading platform Robinhood announced restrictions on lending that would only sell but not buy the relevant shares, and GameStop's (GME) stock price immediately rebounded by 50%.

The US stock index's gains narrowed in the end, the S&P 500 closed at 3787.3 points, up 0.98%; the Nasdaq closed at 133376 points, up 0.5%.

The Dow Jones Industrial Average closed at 30,603.36 points, up 300.19 points, or 0.99%.

Large and small technology stocks regained their lost ground. Qualtrics International (XM), a newly listed software developer in the IPO, rose more than 45% on the first day of trading.

On the previous trading day, the S&P 500 Index and Dow Jones Industrial Average experienced the biggest one-day decline in three months.

US media CNBC blamed the “speculative” buying spree with short positions that caused investors to worry about two points. First, the squeezed hedge funds might be forced to reduce their holdings of other shares to raise cash to close their positions; second, the market Signs of foam formation.

Gamestop (GME) has recently become one of the focus of Japanese investors.

(GettyImages)

Under various criticisms and even trading restrictions, related stocks, including game retailer GameStop (GME), fell by a limit of 64% on Thursday, and closed 44.29% at $193.6.

AMC and EXPRESS (EXPR), which surged more than 300% in the previous trading day, also fell by more than 50%.

Bed Bath & Beyond (BBBY) closed down 36.4%, and Koss closed down 27.66%.

However, as the trading platform Robinhood announced after the market closed that lending restricts the sale of relevant shares, the share price of GameStop (GME) rebounded immediately after the market, and rose to US$292.99 at 7 am local time, a 51.34% increase.

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