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GameStop, AMC Shares Plunge

Broader market rose, with Dow up 475 points
By Newser Editors and Wire Services
Posted Feb 2, 2021 4:05 PM CST

(Newser) – Stocks closed broadly higher on Wall Street Tuesday, adding to the market’s gains from a day earlier with solid contributions from Big Tech companies, banks, and other sectors. GameStop plunged 60% in the latest wild swing for the stock and several others that have become caught up in a speculative frenzy by online traders seeking to inflict damage on Wall Street hedge funds who bet the stocks would fall, the AP reports. The S&P 500 rose 52.45 points, or 1.4%, to 3,826.31. The Dow Jones Industrial Average rose 475.57 points, or 1.6%, to 30,687.48. The Nasdaq rose 209.38 points, or 1.6%, to 13,612.78.

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GameStop dropped 60% to $90 a share, and AMC Entertainment lost 41% to $7.82 a share. Both companies have been in the spotlight for more than two weeks as an online community of investors pushed the stocks to astronomical levels. Trading in those and several other stocks have been restricted by the popular online trading platform Robinhood since last last week following the bouts of extreme volatility. Robinhood needed to secure funding in order to meet deposit thresholds required by organizations that handle the trading orders placed by investors on its platform. Robinhood eased some of the trading limits on GameStop and select other stocks Tuesday. It now allows users to buy up to 100 shares and options contracts in GameStop and 1,250 in AMC. On Monday, the brokerage was limiting users to 5 shares in GameStop and 75 in AMC.

(Read more stock market stories.)

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