- NYSE:AMC gained 13.8% during Tuesday’s trading session.
- Meme stocks rally as short squeeze chatter rises once again.
- AMC investment Hycroft Mining receives warning from NASDAQ.
UPDATE: AMC stock has sold off 7.4% to $7.25 in the first hour of trading on Wednesday. This comes as the entire market has seemed to decide that the bear market rally building on Monday and Tuesday was too much too soon. The Nasdaq is off 1.7%, much worse than its average movement. The Dow is off 1%, and the S&P 500 has lost 1.4%, demonstrating that the strategy of moving into safer investments is again on pace. Meme stocks like AMC can be categorized with high-growth stocks that are part of the Nasdaq since both require a risk-on strategy from markets. The ISM Services PMI came in strong with a reading above consensus on Wednesday morning, which has led markets to think that the Fed is not yet solving the inflation situation. Prices have come down over the past summer and early fall in manufactured goods, but that same pressure has not been brought to bear on the services sector.
AMC Entertainment (AMC) rebounded from Monday’s sell-off and posted one of its strongest days in recent memory. On Tuesday, shares of AMC gained 13.8% and closed the trading session at a price of $7.83. Stocks powered higher for the second straight day to start October as 10-year treasury bond yields slipped further, and weaker than expected employment data triggered the rally. All three major averages rose again as stocks posted their best two-day performance since 2020. Overall, the Dow Jones added 825 basis points, the S&P 500 gained 3.1%, and the NASDAQ rose by 3.3% during the session.
AMC stock price
Meme stocks rallied on Tuesday as chatter of another short squeeze circulated around social media. AMC and its APE preferred units both posted rare gains for the day, with APE shares bouncing off an all-time low and rallying by 12.3%. GameStop (GME) added 8.8%, while Bed Bath & Beyond (BBBY) gained 9%. Meme stocks had been under tremendous selling pressure as of late as investors took a risk-off stance due to the ongoing market volatility. With short interest once again on the rise for these stocks, retail traders are signalling another short squeeze might be in the works.
AMC’s investment in Hycroft Mining (HYMC) is likely not doing too well as the mining company was slapped with a warning from the NASDAQ exchange. The stock has been trading below $1, which is the minimum requirement to be listed. Hycroft now has until April 2023 to trade above $1 for ten consecutive sessions or risk being delisted altogether. Shares of HYMC were up by 8.2% on Tuesday in spite of the warning.
AMC 5-minute stock chart 10/4/22
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