According to CNBC and Marketwatch, the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) on the same day ended at 29982.62, down 620.74 points (2.03%) from the previous year. The 30,000 line based on the closing price collapsed.
The Standard & Poor’s (S&P) 500 index also ended at 3714.24, down 73.14 points (1.93%) from the battlefield. The technology stock-oriented NASDAQ also closed the deal at 13,070.69, down 266.46 points (2.00%).
On this day, the stock market started falling from the beginning. The Dow Index fell more than 250 points compared to the battlefield based on the opening, and S&P and Nasdaq also started to fall in the gap. I tried to rebound once in the morning, but I couldn’t avoid the decline.
With all three indices plummeting on this day, the stock price of Game Stop, a game retailer that became a battleground for US short selling forces and individual investors, surged.
The market started at $392.4971, more than double the battlefield closing price ($193.60).
The pace of the increase decreased slightly toward the second half of the market, but the closing price was also $325.00, which was 67.87% higher than the battlefield.
Earlier in the US stock market, individual investors flocked to this stock, and the stock price skyrocketed over 100% for just a few days. After that, the stock trading application’Robin Hood’ restricted the purchase of this stock, which caused a strong backlash from investors.
After Robin Hood’s trading restrictions, GameStop shares plunged 44% from the closing price of 347 dollars on the 27th to 193 dollars on the 28th. However, the move struck private investors in that hedge funds and institutional investors were able to buy and sell.
Since then, Robin Hood issued an additional statement belatedly and announced that it will ease restrictions on stock trading such as game stop from this day. After that, it seems that a huge amount of money was concentrated on Gamestop, mainly from individual investors in the market.
The GameStop incident was evaluated as a so-called’ant’ victory’ in which individual investors squeezed the short selling force to lower the stock price through intensive trading. However, some are concerned that the volatility exposed in this process could eventually bubble up and cause losses in the market.
“There’s too much leverage in the system,” said Matt Malley, senior market strategist at the financial market firm Miller Tabbock. Explained.
Meanwhile, the Securities and Exchange Commission (SEC), which oversees the US stock market, issued a statement that day, saying, “We will closely review the actions of regulated corporations that are penalizing investors or excessively restraining investors’ (trading) capabilities in certain securities transactions. Revealed.
This was interpreted as a statement aimed at the action of Robin Hood, which restricts individual investors from buying GameStop shares. White House spokesman Jen Saki replied at a briefing that he would watch the activities of the regulator, the SEC, to questions about GameStop.