Senator Elizabeth Warren called for an SEC investigation into Reddit posts and other entities, according to a letter she sent to the Acting Chair of the SEC.
After Redditors discovered large hedge funds had shorted massive quantities of GameStop ($GME), retail investors bought $GME in a frenzy, sending it surging 600%, and causing hedge funds to lose approximately $5 billion dollars. Popular investment platforms such as Robinhood responded by halting the ability of investors to freely purchase more shares, making their only option to sell.
Stocks are closing higher Thursday after a report showed the U.S. job market continues to climb out of the crater created by the coronavirus pandemic in the spring. The S&P 500 rose 0.45% and finished the holiday-shortened week with a gain of 4%. Stocks also rose across Europe and Asia, while oil prices strengthened on hopes that a recovering economy will mean more demand. Worries about the virus are still weighing on investors, however. Florida reported another sharp increase in confirmed cases, helping to cut the S&P 500′s earlier gains by more than half. The bond market was also showing continued caution.
Stocks moved higher on Wall Street in afternoon trading Friday, recouping some of their losses a day after the market had its biggest rout since mid-March.
The S&P 500 was up 0.7% a day after dropping 5.9%. The benchmark index is still headed for a weekly loss following three weeks of solid gains. Small-company stocks and bond yields moved broadly higher, signs that pessimism about the economy was easing.
U.S. Senator Kelly Loeffler, a Republican from Georgia, is the second senator who allegedly dumped stocks after being briefed on the financial disaster COVID-19 was likely to rain down on the stock market.