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Shorted stocks take a pause in U.S. pre-market trade

Published 28/01/2021, 10:21
Updated 28/01/2021, 10:24
© Reuters.

© Reuters.

by Samuel Indyk

Investing.com - A group of heavily shorted US stocks fell in early pre-market trade on Thursday with the dramatic rise in share prices put on hold. At 10:20GMT, GameStop Corp (NYSE:GME) shares fell 2.5%, BlackBerry Ltd (NYSE:BB) shares were down 13% and AMC Entertainment Holdings Inc (NYSE:AMC) Shares were lower by 14% in pre-market.

The pause in the rally came after the popular Reddit forum WallStreetBets was temporarily put on private due to a huge increase in activity and comments. Discord banned the WallStreetBets server, citing “hateful and discriminatory content.” Discord went on to say that the server was not banned due to financial fraud related to GameStop or other stocks.

A similar pattern was seen in the European stocks that had benefitted from the squeeze this week. Nokia Oyj (HE:NOKIA) shares, which had opened higher by 8% are now trading lower by 4%. Pearson PLC (LON:PSON) – the top performer in the FTSE 100 on Wednesday – was lower by 4% and German pharmaceutical company Evotec AG O.N. (DE:EVTG) was lower by 4.6%.

Regulation

The US Securities and Exchange Commission said on Wednesday it is actively monitoring volatility in options and equities markets after the seemingly unstoppable rally in share prices. “We are working with our fellow regulators to assess the situation and review the activities of regulated entities, financial intermediaries, and other market participants,” the SEC said.

In his post-decision press conference, Federal Reserve Chair Jerome Powell declined to comment on the activity, saying a day’s market activity or commenting on a particular stock is not something that he would typically comment on.

Latest comments

Robinhood restrict trading for game stop citing market manipulation. Wall st. Hedge funds and asset managers do this every day , yet its called legal to them. Rules dont apply to the 1% white bred.
on 212 trading they said in our interest they can close gme and amc positions and stole our money...
funny no one is mentioning that brokers limited/ stopped trading GME and most highly shorted stocks, you can only sell. pathetic rigged rubbish system.
on 212 are saying in our interest they can block or delete amc and gme and take people profit
go to revolut or IG
Even worse, they're closing positions in your behalf without your consent!There's a war happening and we're not seeing it.WSB ❤️
🚀🚀🚀
🖕 The Institutional Banks, Hedge Funds, Large PT Firms Etc.
ahahahah GME up to 23% pre market....very naive article.
it is now up to 370. keep buying
Nothing but scare tactics here folks.
Im long GME NOK BB from last week. I think regulators will be moving in soon as more investment funds take hits. Meanwhile I’m happy for the WSB troops.
Very disingenuous to put up a story like this when the premarket had only just opened. As I type this, half an hour after this was published, it's up over 15%
Very disingenuous to put up a story like this when the premarket had only just opened. As I type this, half an hour after this was published, it's up over 15%
Actually GME is up 23% at the moment 😄
Up 17 %😂may as well take this down now
Really? Really? Have another look. GME is up 5% pre market. Manipulation of the press?!
Really? Really? Have another look. GME is up 5% pre market. Manipulation of the press?!
Well thats just a lie gamestop is up 4% pre market. Just another scare tactic - Hold 🚀🚀🚀🚀🚀
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