- NYSE:AMC fell by 0.11% during Friday’s trading session.
- AMC investors were likely cheering Melvin Capital’s apparent demise.
- The SEC is clamping down on short sellers with new regulations.
NYSE:AMC didn’t see its rally last for long as Friday saw a return to its losing ways. Shares of AMC fell by 0.11% and closed the trading week at $17.66. It was a one-day rally as of now for AMC and other meme stocks that saw the movie theater chain jump higher by over 12% during Thursday’s session. AMC’s decline came despite the broader markets rallying higher for the second straight day following Russia initiating attacks on Ukraine. The S&P 500 and NASDAQ both jumped higher by 2.24% and 1.64% respectively, while the Dow Jone had a record setting day, adding 834 basis points for its best showing since November of 2020.
Stay up to speed with hot stocks' news!
Thursday’s rally for meme stocks could have been a celebratory one for Apes around the world. It was reported that Citadel, the main antagonist in the meme stock story, was pulling its $2 billion investment from hedge fund Melvin Capital. If you recall, Melvin Capital was the hedge fund that nearly went bankrupt following the initial short squeeze of AMC and GameStop (NYSE:GME) in January of 2021. With Citadel pulling its investment from Melvin Capital, it seems as though Reddit Apes were treating this as a retail victory.
AMC stock forecast
On Friday, the SEC released a couple of proposals that would help to crackdown on short sellers. The new regulation would allow public visibility of institutional investors with a short position of more than $10 million in a given security. These regulations come as a direct result of last year’s meme stock short squeeze, and should help to even the playing field for retail traders.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to modest recovery gains above 1.0700
EUR/USD clings to small recovery gains above 1.0700 on Monday following the previous week's slide. European political uncertainty continues to undermine the Euro and cap the pair's upside, while the US Dollar consolidates recent gains amid a tepid market mood.
GBP/USD remains pressured below 1.2700 amid cautious mood
GBP/USD stays on the back foot and trades below 1.2700 in the second half of the day on Monday. The hawkish Fed expectations and a softer risk tone keep the US Dollar afloat, exerting downward pressure on the pair. Fedspeak remains next in focus.
Gold retreats below $2,320 as US yields rebound
Gold struggles to build on Friday's gains and trades in the red below $2,320 on Monday. The benchmark 10-year US Treasury bond yield rebound above 4.25% following last week's slide, making it difficult for XAU/USD to gain traction.
XRP stuck below $0.50 as Ripple CLO says SEC has abandoned demand for $2 billion fine
XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).
Five fundamentals for the week: French opinion polls, US Retail Sales and Bank of England eyed Premium
Politics is back, with elections in France rocking markets. US Retail Sales and flash PMIs will provide insights into America's slowdown. The Bank of England announces its decision after all-important CPI data.