February 3, 2021
Dow Closed on Tuesdays The (Feb 2) jumped 475 points after investors eased about volatility in the market caused by GameStop shares.
The Dow Jones Industrial Average rose 475.57 points, or 1.6%, to close at 30,687.48 points, the S&P 500 index gained 1.4% to close at 3,826.31, and the NASDAQ rose 1.6% to close at 13,612.78 points.
CBOE Volatility Index or CBOE Volatility Index (VIX), a measure of market investor anxiety. Tumbled to the lowest level in one week today. After investors began to ease concerns about the phenomenon GameStop.
The share price of GameStop, the popular video game store in the US, plunged 60 percent on the day after a 30 percent drop last night, while it had previously spiked significantly earlier.
The plunge in GameStop’s share price came as a group of retail investors on Wall Street turned their target to silver to push the price up. After adopting a similar strategy to GameStop stocks to preach the big hedge funds that are often speculated by short selling in the market.
Small investors flock to buy silver. As a result, silver contract prices rose above 30 dollars 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 commodity and futures exchange. Announces increase of maintenance margin to stop price manipulation of retail investors in the market.
GameStop’s share price jumped 400 percent last week and soared 1,625 percent in January, driven by retail investors in the room. WallStreetBets With more than 7.6 million members on the Reddit forum, it aims to push GameStop’s share price higher to pressure the hedge fund to buy back the stock to cut losses. After it had been selling short before, it was speculated that GameStop would soon shut down.
GameStop’s share price spike resulted in heavy hedge funds. It is expected to be as high as 19,000 million dollars or about 570,000 million baht.
If GameStop shares continue to rise It will cause hedge funds to sell other stocks in the market to raise money to offset the speculative losses of GameStop.
There are also concerns that the GameStop phenomenon signals a market bubble. Which if the bubble burst Will create a panic And severely affected retail investors
The volatility seen in the market as a rise in GameStop shares prompted the US House of Representatives Financial Services Commission to hold a hearing on Feb. 18, while President Joe Biden’s economic team, including Janet, announced a hearing. U.S. Treasury Secretary Yellen Are also keeping a close eye on the volatility in the US stock market.