GameStop’s shares soared again on Friday, jumping 100 per cent by the market’s open, as under-fire investment app Robinhood partially reversed its decision to restrict trading of its stocks and reportedly secured €1bn from its backers. Despite GameStop’s explosive open, the rest of the market lagged.
Robinhood – which says its “mission is to democratise finance for all” – then decided to block users from buying GameStop shares, which it said was due to “significant market volatility”, prompting a fierce backlash, including from members of the US Congress as politically diverse as Ted Cruz and Alexandria Ocasio-Cortez, who signalled their support for a congressional hearing.
On the market, stock prices tumbled as investors grew weary of the potential ramifications of the GameStop shakeup. The Dow lost 600 points on Friday, and financial analysts fear the market volatility may be a sign of another looming bubble edging toward a pop. The market closed out with its worst week since October.
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