GameStop surges 30% to lead meme stock rally in otherwise boring market
Meme stock king GameStop rallied more than 30% on Tuesday as retail investors came back in full force despite an otherwise quiet market.
The videogame retailer surged as much as 36.5% to $225 apiece in heavy trading volume. More than 7 million shares have changed hands, more than tripling its 30-day average, according to FactSet.
Other meme stocks were also popping.
Shares of AMC Entertainment jumped 21%. The movie theater chain was the most active stock on Fidelity’s trading platform as of 2:30 p.m. ET, according to the broker’s website.
Outside of the group favored by retail investors, the stock market seemed to be dull with most investors eagerly awaiting a key Federal Reserve summit Thursday and Friday. The S&P 500 inched up 0.3% in afternoon trading.
Overall volume was light Tuesday with the SPDR S&P 500 ETF trading 24 million shares, about a third of its 30-day average, according to FactSet.
The Jackson Hole symposium is expected to be market-moving as central bankers could detail their plans for tapering monetary stimulus. The Fed has started discussions to pull back its minimum $120 billion a month bond-buying program by the end of this year.
The short interest in these meme stocks remained elevated. About 28% of AMC’s float shares are sold short, compared to an average of 5% short interest in a typical U.S. stock, according to S3 Partners. For GameStop, the short interest has declined drastically to about 10% from more than 100% in January at the height of the meme stock mania.
Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now
Bomb threat locks down Walter Reed hospital, Navy base
Walter Reed National Military Medical Center is seen shortly after the White House announced that President Donald Trump will be…
Charles Schwab is Trading at All-Time Highs, is it Still a Buy? By StockNews
© Reuters. Charles Schwab is Trading at All-Time Highs, is it Still a Buy? Impressive third-quarter earnings and increased retail…