Update: GME is currently down 8% as markets opened early Monday morning.
The GameStop bull run continued on Friday as Robinhood and other brokers finally lifted trading restrictions on the stock.
$GME was up as much as 113% at one point today, as traders rushed in to take advantage of the rising valuation. The move came as Robinhood was said to raise over $1 billion from investors in order to maintain credit lines.
Regarding the move, the company stated that “By drawing on our credit lines which we do all the time as part of normal day to day operations we get more capital that we can deposit with the clearing houses and that will allow us to enable ideally more investing with fewer restrictions”.
Robinhood who took significant reputational damage, was trending on Twitter with many traders unable to participate in buying yesterday accusing the broker of “protecting Wall Street”.
With restrictions lifted and demand remaining in place GME finished the day up almost 70% closing at $325 per share.
S&P 500 drops as J&J vaccine falls short
The benchmark S&P 500 was once again on the decline on Friday as the COVID-19 vaccine released by Johnson and Johnson vaccine disappointed.
J&J’s vaccine, which is administered with only one dose was said to have a 72% efficacy rate, which is over 20% lower than vaccines from British and European drug makers.
As a result of this, shares in J&J fell as much as 5% today before recovering slightly, with the S&P 500 down 1.77% as of writing. This also comes as data from the U.S. showed that consumer spending was down 0.2% in December.
Elon Musk leads Bitcoin rally
A few days after tweeting “Gamestonk!” leading to a surge in the company’s share price, Elon Musk once again used twitter to prop up prices in another financial market.
The Tesla founder today changed his bio to state “Bitcoin”, leading to the cryptocurrency rallying from as low as $31,979 to an intraday high of $38,624.
BTCUSD rose as around 20% at one point, however it has since dropped off and many still see the cryptocurrency as being somewhat overpriced and anticipate some market correction.
As of writing the crypto currency was trading around $34,570.
Quote of the day – “I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have”Paul Tudor Jones
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Senior Market Analyst