Meanwhile, GameStop soared nearly 70 per cent Friday, continuing a saga that's captivated and confused many on Wall Street and beyond
* All three main indexes suffered their biggest weekly fall since the end of October
* The Dow Jones Industrial Average ended the session down 620.74 points Friday
* The S&P 500 fell 73.14 and the tech-heavy Nasdaq composite slid 266.46 points
* Meanwhile, GameStop soared nearly 70 per cent Friday continuing a saga that's captivated and confused many on Wall Street and beyond
* The rally has raised concerns over how much damage an online revolt against Wall Street bigwigs can do to the broader market
US stocks sank again as a speculative frenzy over GameStop and a handful of other stocks ramps up worries over how much damage an online revolt against Wall Street bigwigs can do to the broader market.
The Dow Jones Industrial Average ended the session down 620.74 points, or 2 per cent, to 29,982.62, while S&P 500 dropped 1.9 per cent, giving the benchmark index its biggest weekly loss since October.
Meanwhile, GameStop soared nearly 70 per cent Friday, continuing a saga that's captivated and confused many on Wall Street and beyond.
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Update #1: GameStop soars again; Wall Street bends under the pressure (AP)
Update #2: Sideshow or main event? GameStop stock ride weighed as bubble warning (Reuters)
WNU Editor: I have been following this week's events covering GameStop, RobinHood manipulating their app, massive hedge fund loses, and cries from Washington DC and the media to do something about it. I refrained from posting anything about it until now.
I am also going to be brief.
I learned tonight that New York based short sellers are down $91 billion in January. Those are huge loses and my gut is telling me that the real losses are probably larger. But that is not the big story. The big story is that almost every major US hedge fund has shorted literally hundreds of stocks across the board.
What this means is that these massive US hedge funds have estimated that the "shit is about to hit the fan" when it comes to the stock market. They know that the US economy is on its way down, and they have positioned themselves to prosper greatly from this financial/market meltdown when it happens.
But they have been exposed.
And we are seeing in real time how Fintech (financial technology) is helping small investors to fight back by using social media to coordinate their actions against these huge funds. This development is also a huge story. The big funds and Wall Street make a good part of their money from shorting stocks But that will no longer be possible after this week's short seller meltdown. The prospect of these wealthy people and institutions losing tens of billions of dollars from this revenue stream is something that they are not going to give away without a fight.
This is where it can get very messy.
If Wall Street and the government moves to limit small investors from participating in the stock market, the anger that is going to explode is going to be massive. One rule for the titans of Wall Street and another rule for main street when it comes to making money is not going to fly.
This is how revolutions start.