Gamestop stock price declined by 60%, repelling individual investors
As the game stop, which shook the US stock market, subsided, the major indexes of the New York stock market all rose by mid-1%. Gamestop shares fell 60%.
On the 2nd (local time), the Dow Jones Industrial Average of the US New York Stock Exchange closed at 36,87.48, up 475.57p (1.57%) from the closing price of the previous trading day.
The Standard & Poor’s (S&P) 500 index rose 52.45p (1.39%) to 3826.31, while the Nasdaq composite index rose 209.38p (1.56%) to close at 13,612.78. All of these indices rose for two consecutive days.
The market watched the progress of the GameStop and the US stimulus package.
The Wall Street Journal reported that the stocks at the center of the social media frenzy led by GameStop for five consecutive trading days moved opposite the Dow Index, and that GameStop’s stock price plunged from $135, or 60%, to $90. In addition, the stock price of AMC Entertainment Holdings fell 5.48 dollars (41%) to 7.82 dollars.
The volatility of the market has also decreased as the intensive buying trend of individual investors responding to the short selling position of large hedge funds has eased. On the Chicago Options Exchange, the volatility index (VIX) fell 15.48% from the previous trading day to 25.56.
Stock markets in major European countries also rose at the same time. On this day, the UK London Stock Exchange FTSE 100 index closed at 6516.65, up 0.78% from the closing price on the previous trading day, and the German Frankfurt Stock Exchange DAX 30 Index rose 1.56% to 13,835.16.
France’s Paris CAC 40 index rose 1.86% to 5563.11, while the pan-European index Euro Stoxx 50 also closed at 3590.46, up 1.69%.
International oil prices have risen, gold and silver prices have fallen. West Texas crude oil (WTI) for March deliveries on the New York Mercantile Exchange rose 1.21 (2.3%) per barrel to $54.76, while gold for April delivery on the New York Merchandise Exchange fell $30.50 (1.6%) per ounce to $1833.40 per ounce. Closed.
Silver for March delivery closed at $26.402, down $3.02 per ounce (10.3%) from the previous day. The silver price rose more than 9% due to the intensive purchase of individual investors the day before, and returned all the gains in one day.
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