Global Markets
Wallstreet closed on the negative on Friday with trading platforms in focus as they limited several securities from trading after markets turned extremely volatile following a short squeeze mainly caused by active GameStop stock purchases.
The Dow Jones closed 2.03% lower with Dow Inc declining 4.56% while the S&P 500 fell 1.93% and the Nasdaq 100 was down by 2.09%.
Last week’s markets volatility prompted the United States Securities and Exchange Commission (SEC) to issue a statement on Friday saying any illegal “manipulative” trading activity in the markets that can harm retail investors needs to be avoided.
The Wall Street Journal reported that Hedge fund Melvin Capital Management lost 53% in January amid the GameStop short squeeze. According to the report, the hedge fund started the year with about $12.5 billion, only to run $8 billion now including the $2.75 billion in emergency funds, following the standoff with retail investors on the WallStreetBets subreddit.
Gamestop Stock
| 1 Week | +362% |
|---|---|
| 1 Month | +1572% |
| 3 Months | +2908% |
| YTD | +1572% |
| 1 Year | +8082% |
This Week’s Major Earnings
| 2/2/2021 | Amazon.com Inc. | 4th Quarter |
| 2/2/2021 | Alibaba Group Holdings | Interim Report 3rd Quarter |
| 2/2/2021 | Alphabet Inc. | 4th Quarter |
| 2/2/2021 | Pfizer Inc. | 4th Quarter |
| 2/3/2021 | Vodafone Group plc | Interim Report 3rd Quarter |
President Joe Biden on Friday reaffirmed that there is no time for delay when it comes to approving a new stimulus package in Congress, insisting the legislators “must act now.”
The US President also noted that the cost of inaction on relief is “high and growing” with each new day, stressing the support will enable the country’s economy to grow instead of being a “drag.”
The White House announced that the new administration is seeking to approve the $1.9 billion relief on a bipartisan basis, and is not considering splitting it into smaller packages.
READ; US Markets; Fed Keeps Rates, FB, Apple & Tesla Earnings, GameStop Rally.
