The wild run-up of trades popular with Reddit crowds is starting to come crashing down, Bloomberg News reported. GameStop Corp. sank 34% in U.S. pre-market trading, extending a 31% plunge on Monday. AMC Entertainment Holdings Inc. slid 25% and Express Inc. lost 18%. Silver tumbled more than 5% after surging to an eight-year high. The speculative activity hatched online has captivated global markets, drawing attention from U.S. politicians and overwhelming brokerages around the world. Now, the speculative tide is turning. In GameStop, short interest plunged to 53% of the available shares, from more than 140% just last month, according to data from financial analytics firm S3 Partners. Trading volume on Monday slowed to around one-third of the average of the past five sessions. Read more.
The U.S. House of Representatives Financial Services Committee will hold a hearing on recent market volatility involving GameStop Corp and other stocks on Feb. 18. Click here for the Committee notice.