GameStop surges 27% to lead meme stock rally in otherwise boring market

Meme stock king GameStop gained 27% on Tuesday as some retail investors came back in full force despite an otherwise calm market.

The video game retailer grew up to 36.5% to $ 225 apiece while trading in high volumes. According to FactSet, more than 14 million shares changed hands, seven times more than the 30-day average.

Other meme stocks rose as well.

AMC Entertainment’s shares were up 20.3%. The cinema chain was the most active stock on Fidelity’s trading platform as of 2:30 p.m. ET, according to the broker’s website.

Clover Health rose nearly 10%. Bed Bath & Beyond increased by more than 4%. Robinhood, which also gained meme stock status, rose 9% on Tuesday with no apparent news.

Outside of the retail group’s preferred group, the stock market appeared boring as most investors eagerly awaited an important Federal Reserve summit on Thursday and Friday. The S&P 500 closed Tuesday’s session 0.2% higher.

The total volume was small on Tuesday as the SPDR S&P 500 ETF traded 30 million shares, according to FactSet, which is about half of its 30-day average.

The Fed’s Jackson Hole Symposium is expected to move the market as central bankers could detail their plans to reduce monetary stimulus. The Fed has started talks to withdraw its monthly bond purchase program of at least $ 120 billion by the end of this year.

Short interest in these meme stocks remained high. According to S3 Partners, about 28% of AMC’s floating stocks are sold short, compared to an average short 5% of a typical US stock. For GameStop, short interest has dropped dramatically, from over 100% in January at the height of the meme stock mania to around 10%.

Did you like this article?
For exclusive stock selection, investment ideas and global CNBC livestream
Sign up for CNBC Pro
Start your free trial now

Comments are closed.