💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Five things to watch in Reddit stocks trading mania

Published 02/04/2021, 02:58 AM
Updated 02/04/2021, 03:00 AM
© Reuters. FILE PHOTO: GameStop logo is seen in front of displayed Reddit logo in this illustration
GME
-

(Reuters) - U.S. officials meet on Thursday to discuss two weeks of social media-fueled volatility in stock markets, as the trading frenzy around GameStop (NYSE:GME) and other Reddit favorites calms.

Here are five things to watch on Thursday:

** CONTROLS EASED - Robinhood, the online brokerage conduit for much of the past fortnight's action, further eased buying restrictions on buying shares in GameStop and cinema operator AMC . On Wednesday it allowed trading in fractional shares, which encourages participation from smaller investors by reducing the size of the amount they need to bet. Its trading limit on GameStop shares is now 500 and on AMC 5,500.

** YELLEN CONVENES - U.S. Treasury Secretary Janet Yellen meets top officials on Thursday from the Securities and Exchange Commission (SEC) and Federal Reserve to discuss the recent market volatility. Although regulators have not yet signaled what form any official actions could take, potential targets could include retail brokers' capital requirements. The SEC is also reviewing social media posts for signs of potential fraud, Bloomberg News reported.

** STOCK SWINGS - Frankfurt listed shares in GameStop dipped 12% on Thursday after steadying in the United States on Wednesday.

** VOLATILITY - The U.S. CBOE volatility index returned on Wednesday to levels last seen earlier in January, indicating the big swings caused by the frenzy have eased. [MKTS/GLOB]

© Reuters. FILE PHOTO: GameStop logo is seen in front of displayed Reddit logo in this illustration

** SILVER CHARGE - Perth Mint's silver coin sales jumped 23.5% in January from the previous month due to retail demand after calls to buy it on Reddit and other platforms. Silver prices have stabilized since Tuesday. [GOL/]

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.