Dow climbs 345 points as concerns of Reddit-fueled volatility cool

Stock Market Traders
  • US stocks rose for the second straight session as day-trader volatility eased from last week’s highs.
  • GameStop, AMC Entertainment, and other Reddit darlings fell as retail investors took profits.
  • Alphabet and Amazon are set to influence Wednesday’s action by reporting earnings after the market close.
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US equities gained for the second straight day as the unwinding of retail-trader volatility aided sentiment.

Stocks recently boosted by an army of casual investors sank as profit-taking finally caught up with their weeks-long rallies. GameStop, AMC, and BlackBerry all traded lower, though not harshly enough to erase their steep rallies. Traders in the Wall Street Bets subreddit urged members to keep holding shares, but brokers’ trading restrictions and concerns about the bubble bursting have driven selling.

Elsewhere, investors cheered President Joe Biden’s push to pass a massive economic stimulus bill. The president met with 10 Senate Republicans on Monday to discuss their much smaller counterproposal. The White House press secretary, Jen Psaki, said that though the meeting was “productive,” the administration would “not settle for a package that fails to meet the moment.”

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

Read more: Buy these 26 heavily shorted stocks as retail traders trigger wild rallies in Wall Street’s least liked names, Wells Fargo says

Stocks were also lifted by signs that the worst stage of the coronavirus pandemic is abating. Daily new cases have fallen to their lowest since early November, and hospitalizations have trended lower in recent weeks. Vaccinations have accelerated, suggesting the country could be on its way to a reopening.

Earnings season charges on after the close with Google’s parent, Alphabet, and Amazon set to report quarterly figures. The companies’ large weightings in benchmark indexes mean their reports could drag the broader market lower on Wednesday or extend the week’s rally.

Pfizer, UPS, and Exxon Mobil all climbed after reporting earnings ahead of the market open.

Read more: The investing chief at a $200 million hedge fund that earned 300% on its Bed Bath & Beyond trade breaks down why the GameStop mania is ‘just the beginning’ – and shares another stock he believes will similarly spike

Virgin Galactic leaped for the second consecutive session amid high hopes for a new test flight. The company said on Monday that it would conduct a rocket-powered trial as early as February 13.

Bitcoin neared $35,000 after trading below the $34,000 support level for much of the weekend. The popular cryptocurrency has regained some momentum in recent sessions following its late-January slide below $30,000.

Spot gold slid 1.7%, to $1,829.91 per ounce, at intraday lows. The US dollar weakened slightly against a basket of Group-of-20 currency peers, and Treasury yields rose.

Oil prices climbed. West Texas Intermediate crude jumped as much as 2.7%, to $55.02 per barrel, its highest level in a year. Brent crude, oil’s international benchmark, gained 3.5%, to $57.84 per barrel, at intraday highs.

Read more: The GameStop mania driven by Reddit traders isn’t simple market trolling. It’s a populist movement threatening to disrupt the financial system to a degree Occupy Wall Street only dreamed of.

Read the original article on Business Insider