Gamestop (GME) tumbles as Robinhood puts shares on “reduce only” mode, buyers fight back

Yohay Elam FXStreet

GameStop Corp (NYSE: GME) has kicked off Thursday's session with a fall after Robinhood announced it is taking several measures to limit new positions on GME options. Moreover, the trading platform announced a "reduce-only" mode on Gamestop and several other shares: AMC, BB, BBBY, EXPR, KOSS, NAKD AND $NOK.

The company says:

Regarding the theater company, see

AMC Stock Price: AMC Entertainment Holdings Inc soars 300% after raising over $300 million

The battle around short options has fueled elevated volatility in GME stock. Robinhood is one of retail traders' most popular platforms for equities, thanks to its sleek mobile interface. These shares and options have been the focus of the financial world in the past few days.

Update: GameStop Corp.(NYSE: GME) is changing hands at around $300, down by around 13% but above the lows. Buyers seem to be fighting back ahead of option expires on Friday.

More Should I buy GameStop (GME Stock) right now?

GME news

According to CNBC, "any number of large hedge funds have suffered significantly." The channel also added that Melvin Capital – which has reportedly exited its short position against the videogaming company – incurred "massive losses" An army of retail trades organized on Reddit's WallStreetBets seems to have the upper hand against financial firms.

The frenzy in GME and several other stocks has put regulators and even the White House on alert. Some worry that the frenetic action in small stocks represents a late-stage rally that signals a downfall in broader equity markets. On the other hand, the Federal Reserve refused to warn of any froth in equities, instead of focusing on helping the economy recover.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Crypto Today: Bitcoin and Ethereum edge lower, XRP extends recovery as macro headwinds weigh

The broader cryptocurrency market is consolidating on Friday, with Bitcoin paring losses slightly above $84,000. Ethereum declines in tandem with BTC. Ripple (XRP), meanwhile, paints a different picture.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Federal Reserve (Fed) and the Bank of Japan (BoJ) have just done something remarkably similar. Both central banks raised interest rates by 25 basis points (bps) last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.