The resurgence of meme stocks fascinates traders as U.S. stocks fluctuate

Shares of the AMC film chain, which skyrocketed to the point of bankruptcy a few months ago, reached their highest level in four years on Thursday, as investors chased companies benefiting from the economic reopening and resurrected “stock meme” trades from the beginning of this year.

The move near 40 percent came when the U.S. broader market changed, with the S&P 500 at 0.1 percent the afternoon in New York while the Nasdaq was flat. European stocks closed their trading session with small gains, while US government stocks eased.

AMC was one of several companies captured in the retail frenzy of retail investors of January, with video game retailer GameStop, when the day-to-day traders pushed the highest titles and suffered heavy losses on special funds betting against them.

AMC shares have more than doubled this week and are up more than ten times from $ 2.12 a piece at the end of last year.

GameStop, whose shares peaked at $ 483 at the end of January, are up more than a third this week, although they fell 1.5 percent Thursday to $ 239. At the end of 2020, the stock was $ 18.84.

Some investors had pointed to the growth of meme stocks and other hot exchanges earlier this year as evidence of market foaming, but many of these exchanges appeared to have unfolded recently. Special-purpose acquisition companies, fund exchanges managed by technology investor Cathie Wood of Ark Invest and Tesla shares are all exchanged significantly.

“Just this past Monday, we wrote about a large portion of the apparent‘ foam ’that has been removed from the market, citing in particular the reduction in apparent participation in retail sales,” Christopher Jacobson wrote Thursday. market maker analyst Susquehanna. “Since Tuesday afternoon, we’ve seen a fairly consistent trend of supperformance” among retail favorites like GameStop and AMC.

Jacobson said short-term interest in some of these stocks was growing again, suggesting more investors are betting that the rise will be short-lived. Short-term interest in BlackBerry, the software company, is now above 8.8 percent of total floatation, according to S3 data, higher than the 8.7 percent by mid-January.

BlackBerry shares were up 3.6 percent Thursday, after growing close to 10 percent Wednesday.

The latest figures for jobless claims in the United States have underpinned progress in reopening the economy. New claims were dropped in a pandemic-era low of 406,000 in the week to May 22 from 444,000 a week earlier and lowered economists ’expectations for 425,000 new claims.

This has led to a sell-off in government securities, and the yield on the 10-year US Treasury note, which influences lending costs worldwide, has increased by up 0.04 percentage points to 1, 62 percent.

However, investors demanded to recover a new 7-year debt, with the Treasury department able to unload $ 62 billion of new securities on Thursday at a yield of 1,285 percent. These auctions have attracted attentions after a sad sell-off of 7-year notes in February sparked a $ 21 billion market volatility attack on U.S. government debt.

European debt is also selling, with yields on 10-year gold in the UK climbing 0.06 percentage points to 0.82 per cent and yields on the German Bund equivalent of 0.03 percentage points less 0.174 percent.

“Markets remain firmly in the spotlight on the state of the employment framework in the United States,” said Charles Hepworth, director of investments at GAM Investments. “A trend to improve rapidly will inevitably raise fears that the Fed will soon begin to talk… About declining” its U.S. government debt purchases, he said.

Under increasing pressure on bond markets, US President Joe Biden is ready to seek approval for a $ 6 billion federal budget for next year, raising the prospects of an increased supply of Treasury to fund investments in infrastructure, child care and public works.

The moves came ahead of Friday’s inflation data which is expected to show that core personal consumption spending, the preferred measure of Federal Reserve price movements, rose 2.9 percent year-on-year in April. . That would be the strongest annual growth since 1993.

In currencies, the pound rose 0.6 percent against the dollar to $ 1.4205. The dollar index, which measures the green dollar against a basket of major currencies, was stable at about its lowest point by 2021. The euro was essentially flat at $ 1.2202.

Brent crude, the world’s crude oil benchmark, rose 0.4 percent to $ 69.13 a barrel.

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