Stocks sell off in worst week since October amid concerns that retail trading is creating havoc

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Day traders\u0027 bids for heavily\u002Dshorted stocks fuelled speculation hedge funds would need to reduce their market exposure

GameStop Corp. and AMC Entertainment Holdings Inc. soared, signalling a return of volatility for stocks popular in internet chat rooms as brokerages said they would start to ease trading restrictions imposed after wild swings this week. Bitcoin surged as much as 16 per cent after Tesla Inc. founder Elon Musk mentioned it on his Twitter profile.Article content continued

The Stoxx Europe 600 dropped almost 2 per cent in a broad decline. Swedish retailer Hennes & Mauritz AB fell after warning it’s still in “crisis mode,” with 40 per cent of stores shut. Bootmaker Dr. Martens Plc jumped 22 per cent as it ended its first day of trading in London. Global stocks are set for their worst weekly slide in about three months, partly on the turmoil caused by hoards of day traders hatching stock bets that roiled hedge funds and strained trading platforms. Some strategists say investors should buy the dip because they expect stimulus-fuelled economic recovery from the pandemic. Others fear an uneven vaccine rollout signals a fragile outlook amid stretched valuations.

Meanwhile, a glut of liquidity sent short-term U.S. dollar borrowing costs to a record low. But in China, a money-market rate surged to the highest in almost six years, reflecting tighter financial conditions even after the central bank extended credit for the first time this week.The S&P 500 Index fell 1.9 per cent at 1:33 p.m. in New York.The Stoxx Europe 600 index dropped 1.9 per cent.The MSCI Asia Pacific index fell 1.6 per cent.The MSCI Emerging Markets index dropped 1.5 per cent.

 

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Or selling to try and cover their massive losses.. love it these losers who short have no sympathy from those they take from so why should anyonecare about them.. hope is the top of the iceberg and these guys learn a lesson they never will forget

Buyeth the dip

big guys dont like their medicine?

'Hedge funds liquidate to intimidate mainstreet'. That's the headline

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