Stock market has worst week since October amid Reddit frenzy
Wall Street had its worst week since October as day traders bid up stocks for GameStop, AMC and others that gained popularity on Reddit.
Details: The S&P 500 fell more than 1.9% on Friday. All of the major averages fell more than 3% this week.
Why it matters: The broader market sell-off comes amid historic trading activity in a basket of so-called "meme stocks."
- GameStop's shares jumped 400% this week and 1,600% this month, while AMC gained 280% this week.
- Wall Street short-sellers, i.e. those betting these stock prices will fall, suffered losses as high as $19 billion, per the New York Times.
Between the lines: The markets are still near all-time highs, having fully recovered from last year’s coronavirus sell-off.
What to watch: Investors are also increasingly concerned about the coronavirus vaccine rollout as shortages become more apparent around the world.