Stock

Market Snapshot: Dow Futures Soar 250 Factors As Inventory Market Tries To Shake GameStop Fears

U.S. stock index futures traded solidly higher on Monday morning as the market tried to rebound from its worst weekly loss since October as worries about GameStop Corp., resulting from trading with video game dealers and others, surfaced Triggered sales on Wall Street.

How are the stock markets developing?

Futures for the Dow Jones Industrial Average
YM00,
+ 0.84%
YMH21,
+ 0.84%
rose 240 points, or 0.8%, to 30,129.

S&P 500 index futures
ES00,
+ 1.09%

ESH21,
+ 1.09%
rose by 41.30 points to 3,746.50, an increase of 1.1%.

Nasdaq 100 futures
NQ00,
+ 1.09%

NQH21,
+ 1.09%
rose 148.50 points or 1.1% to 13,059.75.

Stocks posted their worst weekly falls since October 30 on Friday. The Dow
DJIA,
-2.03%
The S&P 500 closed 3.2% lower for the week
SPX,
-1.93%
up 3.3% and the Nasdaq Composite
COMP,
-2.00%
ended up with a weekly slide of 3.5%.

On a monthly basis, the Dow was down 2%, the S&P 500 was down 1.1% and the Nasdaq Composite was up 1.7%.

What is driving the market?

Stock investors are trying to bounce back from an epic short squeeze that struck Wall Street and Main Street last week, partly reflecting concerns about inflated stock valuations.

The three major indices had their worst week and worst overall month since October on Friday as volatile trading with brick and mortar retailer GameStop
GME,
+ 67.87%
and film chain AMC Entertainment Holdings
AMC,
+ 53.65%
There is reason to fear that another forced sale in heavily indebted and severely shortened market areas would put pressure on prices.

Last week, GameStop's shares rose 400%, AMC Entertaintment rose 278%, and Koss Corp.
KOSS,
+ 52.53%
rose 1,816%, given the extreme trading volume and volatility that forced many brokers to curb trading activity on certain names.

"The chaos on Wall Street has already caught the attention of regulators and lawmakers, but until action is taken the madness is unlikely to subside," Raffi Boyadjian, senior investment analyst at XM, wrote in a daily Research report.

Indeed, last week's moves forced brokers, including Robinhood Markets, to restrict trading on their platforms. The frantic trading of stocks targeted by individual investors also attracted the attention of the White House, Congress, and regulators, including the Securities and Exchange Commission.

By now, the social media community appears to have turned its attention to the $ 1.6 trillion silver market
SI00,
+ 11.78%.
Silver has rallied in recent trading sessions after users posted on Reddit's WallStreetBets forum about executing a "short squeeze" similar to those attributed to the GameStops surge.

Gains in futures can also be attributed to the recent decline in COVID-19 cases in the US, with newly reported coronavirus cases on Sunday down from a day earlier, as well as hospital stays and deaths.

Investors continue to watch the progress of President Joe Biden's proposed $ 1.9 trillion economic aid package. Hopes for aid, as well as the Federal Reserve's pledge to keep low-priced credit in abundance, have propped up financial markets. CNBC reported over the weekend that a group of 10 Republican senators issued a letter asking Biden to consider a smaller proposal.

Around 100 S&P 500 companies will be posting profits in the companies' quarterly results, including those from Amazon.com
AMZN,
-0.97%
and alphabet
Aco,
-1.47%

TogetL,
-1.39%
due Tuesday.

In economic reports, investors are waiting for a January Manufacturing Index report due at 10 a.m. east from the Institute for Supply Management. At the same time, a monthly report on construction spending for December is also due.

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