[주말! 이슈 관전하기] Why is the New York Stock Market fluctuating… Dow broke by 30,000, a gamestop that jumped 68%

The three major indexes plunged around 2%… Apple and Tesla also fell

[오늘경제 = 최주혁 기자]

The U.S. New York Stock Market is swaying day after day due to the game stop situation, which has emerged as a hot potato due to the’ant (individual investor) revolt’.

Some hedge funds that sold GameStop stocks in large quantities broke their hands and declared surrender, but most of the short selling forces are still holding up despite astronomical losses, local media reports.

Short selling is an investment method in which the stock price of GameStop is expected to fall, and the stocks that are not held are sold by borrowing, and then the price is lowered later and then bought and paid back.

‘Video game distribution chain (retailer)’ GameStop is the third most short-selling stock in the US by investors after Tesla and Apple. Naturally, GameStop has turned into a battlefield for the current US short-selling force and individual investors.

As gamestops, where individual investments were concentrated, surged, the New York Stock Market crashed again. In other words, the stock market declined due to concerns over’excessive stock price fluctuations’ in some stocks, such as Game Stop.

On the 29th (local time), the last market in January, the Dow Jones 30 Industrial Average on the New York Stock Market closed at 29,982.62, down 620.74 points (2.03%) from the battlefield. It has been a month and a half since the 14th of December last year that the Dow has given the 30,000 line.

The Standard & Poor’s (S&P) 500 index fell 73.14 points (1.93%) to 3,714.24, while the technology-oriented NASDAQ index fell 266.46 points (2.00%) to 13,070.69.

All three indexes recorded weekly declines of over 3% this week, the worst week since October last year.

The overall market was unstable, with GameStop’s stock price rising 67.9%, almost making up for the previous day’s plunge (-44.3%) due to the’ant vs. hedge fund’ confrontation.

It seems that stock trading brokers such as Robin Hood, a’online brokerage company’, which are mainly used by individual investors, have eased some restrictions on trading restrictions on game stops, but it is pointed out that Robin Hood’s policy on trading high volatility stocks caused confusion.

Eventually, GameStop, which seems to have attracted enormous amounts of money mainly from individual investors, soared more than 1,600% until this year, and AMC Entertainment, another intensive purchase target of ants, soared more than 500%.

The GameStop situation, which is receiving the spotlight of foreign media every day, is evaluated as a revolutionary event in which individual investors militantly overpowered the short-selling forces’to lower the stock price through intensive trading.’

However, on the other side, it is pointed out that the leverage on the system triggered in this bloody fight can result in a bubble in the stock market and’can cause headwinds’.

In fact, there are concerns that overheating of some stocks is having a negative effect on the overall stock market, CNBC Broadcasting said.

Hedge funds, which short-sell gamestop stocks, are putting downward pressure on the whole as they sell other stocks to raise cash. It looks like Gamestop and AMC are sucking up a significant portion of the money released in the stock market.

In contrast, Apple fell 3.7 percent, Tesla 5.0 percent, and Microsoft 2.9 percent.

The results of a phase 3 clinical trial for a novel coronavirus infection (Corona 19) vaccine by Johnson & Johnson, a US pharmaceutical company, also seem to have contributed to the stock market.

The preventive effect of the Johnson & Johnson vaccine, which was expected as one of the’game changers’ because it only needs to be inoculated once and can be stored at room temperature, was 66% on average, less than that of Pfizer-Bioentech (95%) and Modena (94.1%).

In the U.S., it showed a 72% prevention effect, but in South Africa, where the mutant virus is prevalent, the number has dropped to 57%.

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