US Dow Index collapses by 30,000 due to disappointment in vaccines… Short Sale War Game Stop 68%↑

In the New York Stock Market, major indices declined due to concerns over excessive stock price fluctuations in some stocks, such as Gamestop.

On the 29th (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average ended trading at 2,9982.62, a plunge 620.74 points (2.03%) from the battlefield.

The Standard & Poor’s (S&P) 500 index closed at 3714.24, down 73.14 points (1.93%) from the battlefield, and the technology stock-oriented Nasdaq index closed at 13,070.69, down 266.46 points (2.0%).

The Dow Index closed below the 30,000 line for the first time since mid-December last year.

The Dow index fell about 3.3% this week. The S&P500 index fell by about 3.3% and the NASDAQ by 3.5%.

The market watched the overheating pattern of some stocks such as GameStop, the news of the novel coronavirus infection (Corona 19) vaccine, and major economic indicators.

Excessive volatility, centered on some stocks, is a pattern that raises the market’s overall anxiety.

Recently, as individual investors intensively invested in some stocks such as Gamestop and AMC, the stock price has fluctuated rapidly.

Analysts suggest that if the stock price of the stock rises, hedge funds in short-selling positions are forced to lose, and they face a situation where they are forced to sell other stocks they hold in order to prepare margin.

There are also concerns that there may be problems with the liquidity of securities companies that broker transactions.

On the previous day, Robin Hood, an online brokerage company mainly used by individual investors, announced that it would restrict trading on overheated stocks such as GameStop, and the stock prices of these companies fell sharply, but major indexes rose.

On the other hand, the market was unstable as stock prices such as Gamestop surged again on this day. Gamestop’s stock price rose by more than 100% during the day, ending a 68% increase. AMC rose more than 50%.

Robin Hood’s policy on trading highly variable stocks also caused confusion.

Robin Hood re-allowed some transactions, but severely limited the size of the transaction. During the intraday, the size limit was further tightened. In the case of GameStop, investors are allowed to buy only one share. The number of stocks that limit the transaction size has also been significantly expanded to 50.

The U.S. Securities and Exchange Commission (SEC) said it would check whether investment restrictions or other measures could have disadvantaged investors.

News about the Corona 19 vaccine also disappointed investors.

Johnson & Johnson (J&J) announced that the vaccine being developed today showed an average of 66% preventive effect. In the US, the preventive effect recorded 72%. On the other hand, in South Africa, the prevention effect was found to be only 57%.

J&J’s vaccine is expected to be effective as it is given only once, but concerns have risen that it will not be effective against mutant viruses.

Controversy over the supply disruption of the vaccine that has already been developed continues.

In European countries such as France, vaccinations are discontinued due to lack of vaccines.

The European Union (EU) approved the urgent use of the AstraZeneca vaccine on the same day, but the conflict is continuing over the initial supply scale.

By industry on this day, energy fell by 3.39% among all industries. Technology lead also fell by 2.4%.

On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 33.09, up 9.53% from the previous trading day.

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