Connect with us

Markets

Stock futures higher as Dow scales record levels, GameStop stock soars over 100 percent

Published

on

U.S. stock index futures moved higher in overnight trading on Wednesday after the Dow closed at a record level during normal trading hours as hares of GameStop surged more than 100%.

Futures contracts tied to the Dow Jones Industrial Average gained 60 points. S&P 500 futures were up 0.10%, while Nasdaq 100 futures advanced 0.08%.

The move comes after the Dow jumped 425 points to close at a record high in a volatile session that at one point saw the 30-stock average drop more than 110 points.

The S&P 500 advanced 1.1%, while the Nasdaq Composite gained 1%. Earlier in the session, the tech-heavy index was down 1.3%.

Rising rates weighed on stocks early in the session as the U.S. 10-year Treasury yield topped 1.4% and hit its highest level since February 2020. Higher rates could spur investors to rotate out of stocks and into bonds. Higher rates could also hit the growth-oriented technology sector especially hard.

Yields came off their highs after Federal Reserve Chair Jerome Powell continued to downplay the threat of inflation.

It will also be a busy day on the earnings front with a number of companies set to release quarterly results. Best Buy, Papa John’s, and Domino’s Pizza are among the names on deck before the opening bell. After the market closes, Salesforce.com, Beyond Meat, Etsy and Caesars Entertainment are among the names reporting.

The market is also eagerly awaiting the results of newly public companies Airbnb and DoorDash on Thursday.

Tesla jumped 6.2% to 742.02, extending a recovery after a huge intraday drop Tuesday to 619, and fueling support for EV stocks and speculative growth names overall. ARK Invest bought a lot more Tesla stock on Monday and Tuesday, following a number of buys in the past few weeks. TSLA stock, ARK’s top holding across all its ETFs, is still 6.2% below its 10-week line.

Meanwhile, shares of GameStop surged more than 100% as the board announced the ouster of CFO Jim Bell on Tuesday in order to execute its turnaround more quickly. The stock was embroiled in an epic short squeeze last month.

The stock was halted with less than 30 minutes left as it ended the day up 103.9%. Shares of GameStop rose another 83% in after-hours trading. A handful of other Reddit trades rose in after-hours trading on Wednesday as shares of AMC popped 22% and Koss gained 57%.

The Bitcoin price, which plunged below $45,000 on Tuesday recovered partially but traded below $51,000 Wednesday night.

 

 

 

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending