GameStop, AMC soar again while stocks indexes open lower
Posted January 29, 2021 9:56 am.
This article is more than 5 years old.
Major indexes opened lower on Wall Street Friday, while shares of GameStop, AMC and several other stocks being targeted by a rowdy community of amateur investors soared again in more volatile trading.
The U.S. markets continue to see volatility surrounding the video game vendor GameStop and other stocks that have become favorites of smaller investors who’ve pushed some of the companies to dizzying heights given their business prospects. In premarket trading, GameStop shares jumped 76%, movie theater operator AMC Entertainment rose 40% and headphone Koss gained 57%
The S&P 500 index fell 0.7% in the early going.
The frenzied trading in those stocks has drawn increasingly loud calls on Capitol Hill and elsewhere for regulators to step in. The Securites and Exchange Commission said it was closely evaluating the “extreme price volatility” in certain stocks.
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On Wall Street, the future for the Dow Jones Industrial Average was off about 1% while the S&P 500 future showed a decline of 0.8%.
On Wall Street, the S&P 500 on Thursday rose out of the red for the year as investors watched wild swings in GameStop, which skidded 44.3%. Cinema chain AMC and other stocks that have become targets for online traders also gyrated.
Several fell after Robinhood and other trading platforms restricted trading, causing an outcry by some customers. Robinhood has restored some trading in the shares Friday, which has prompted their gains in the premarket.
