🔽 US2000 erases gains as meme-stocks trim early surge
Meme-stocks are in the centre of attention once again, with GameStop (GME.US) launching today's cash trading with an over-70% bullish price gap. While the stock has trimmed a large part of those gains in the first hour of trade, but shares continue to trade over 30% higher on the day. The move higher was triggered by reports of RoaringKitty, trade closely associated 2021 meme-stock mania, building an over $100 million position in GameStop shares and call options. Other meme-stocks, like AMC Entertainment (AMC.US) or BlackBerry (BB.US), also traded higher today, but magnitude of the move was much smaller than in the case of GameStop.
A surge in meme-stocks has pushed small-cap Russell 2000 futures (US2000) over 1% higher earlier today. However, as GameStop and other involved stocks began to trim gains, so has the US2000 index. All the earlier gains on the index have been erased already, and now US2000 trades more or less flat compared to Friday's close.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Small-cap Russell 2000 (US2000) erased meme-stock fuelled gains after launch of Wall Street cash session and now trades more or less flat compared to Friday's close. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
