US

US stocks try to recover from worst week since October


The major US indexes opened sharply higher but slipped back from their highs in the first hour of trading. The Dow was up 0.4%, or 105 points, while the broader S&P 500 (SPX) traded 0.7% higher. The Nasdaq Composite (COMP) rose about 1%.
GameStop (GME), meanwhile, took a backseat, slipping more than 20%. The gaming retailer dominated Wall Street last week after a group of retail investors chatting on Reddit pushed the stock up some 400%, causing a massive short squeeze for institutional investors, such as hedge funds, who had been betting against the business.
The GameStop frenzy raised many questions including whether investment products were priced appropriately and the democratization of trading.
The Reddit investors have moved on to literally shinier things: silver. Silver futures were up more than 10% at nearly $30 per ounce early Monday. Stock traders must be glad about this new focus.
Various trading platforms and brokerages again experienced issues on Monday, according to Downdetector. Brokers struggled on multiple occasions last week and some slapped restrictions on trading stocks favored in the Reddit forums, including GameStop.

In terms of bigger macro themes, the vaccine rollout that promises the end of lockdowns at some point in the future remains a focus. As does President Joe Biden’s $1.9 trillion stimulus package, which is the topic of debate in Washington.

It’s also a week with plenty of economic data, including a look at the US jobs market in January. Following the December loss of 140,000 jobs the expectations for Friday’s report are muted, with a flat unemployment rate at 6.7% and a net gain of 50,000 jobs.

In Monday’s economic data, the Institute for Supply Management’s manufacturing index showed that activity in the sector slowed slightly in January. The index fell to 58.7, down nearly 2 points versus December. Any value over 50 denotes an expansion in the sector.


Source link

Related Articles

Back to top button