5 issues to think about concerning the Reddit inventory buying and selling frenzy
© Reuters. FILE PHOTO: The GameStop logo precedes the displayed Reddit logo in this image
(Reuters) – US officials meet on Thursday to discuss over two weeks of volatility-related volatility in the stock markets as the trading frenzy over GameStop (NYSE 🙂 and other Reddit favorites subsides.
Here are five things to see on Thursday:
** AGREED CONTROLS – Robinhood, the online brokerage conduit for much of the last 14 days of promotions, has further eased purchase restrictions on shares in GameStop and the cinema operator AMC. On Wednesday, it allowed fractional stocks to be traded, encouraging smaller investors to participate by reducing the amount they have to wager. The trading limit for GameStop shares is now 500 and for AMC it is 5,500.
** YELLEN CONVENES – US Treasury Secretary Janet Yellen will meet senior officials from the Securities and Exchange Commission (SEC) and the Federal Reserve on Thursday to discuss recent market volatility. While regulators have not yet signaled what official action might look like, potential targets could include retail broker capital requirements. According to Bloomberg News, the SEC is also reviewing social media posts for signs of potential fraud.
** STOCK SWINGS – Frankfurt-listed GameStop stocks fell 12% on Thursday after stabilizing in the US on Wednesday.
** VOLATILITY – The US CBOE volatility index returned on Wednesday to levels last seen in January, indicating that the large swings caused by the frenzy have subsided. [MKTS/GLOB]
** SILVER COST – Perth Mint silver coin sales rose 23.5% in January from the previous month, driven by retail demand for calls to buy on Reddit and other platforms. Silver prices have stabilized since Tuesday. [GOL/]
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