【Youth Daily】 Major indices in the New York Stock Market declined due to concerns over excessive stock price fluctuations in some stocks, including Game Stop.
The Dow Jones 30 Industrial Average ended trading at 29982.62, which plunged 620.74 points (2.03%) from the battlefield on the New York Stock Exchange (NYSE) on the 29th (US time). The Standard & Poor’s (S&P) 500 index closed at 3714.24, down 73.14 points (1.93%) from the battlefield, while the technology stock-oriented NASDAQ index closed at 13070.69, down 266.46 points (2.0%).
The Dow Index closed below the 30000 mark 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 of some stocks, such as Game Stop. 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.
By industry on this day, energy fell by 3.39% among all industries. Technology lead also fell by 2.4%. The mixed economic indicators of the US could not soothe market unrest.
New York stock market experts expressed anxiety about overheating some stocks.
SYZ Private Bank Investment Representative Luke Phillip said, “The story of GameStop, where individual investors emerged as new players in the market, is a difficult variable to ignore.” “There is a very important link with hedge funds that took a short position in these stocks.” .
“These funds are selling other stocks they hold to make up for the loss of their short positions, which puts a strain on the market as a whole,” he said.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 33.09, up 9.53% from the previous trading day.
【Youth Daily = Reporter Kang Jeong-wook】