U.S. stock futures fell as retail investors buoyed GameStop and other shares, pointing to a volatile end to 2021’s first month of trading.
Futures tied to the S&P 500 declined 1.2%, suggesting a reversal in direction after a nearly 1% rise Thursday. Those linked to the Nasdaq-100 retreated 0.9%.
Shares of GameStop soared over 60% premarket, after closing down 44% Thursday. AMC Entertainment was up more than 30% ahead of the opening bell.
Robinhood Markets, a popular venue for online traders, said late Thursday it would reinstate some trading in stocks that it had curbed earlier.
“The GameStop story, where you have retail investors that are a new actor on the market, [is] one that people cannot ignore,” said Luc Filip, head of private banking investments at SYZ Private Banking. “There are some critical links for hedge funds that are short on those stocks.” Those investors are selling other long positions to close out money-losing short positions, weighing down markets overall.
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