Stock markets around the world are reeling from Reddit traders' volatile trading over the past week. How the speculative activity continues could determine whether the trend pops with little lasting impact or sparks a new discussion over economic equality.
What began as an effort to profit from a short squeeze has since exploded into a national debate on market access. Retail traderslifted GameStop, AMC, and other highly shorted stocks, hoping to profit as funds covered their short positions. The group ultimately beat Wall Street at its own game. Their trades drove billions of dollars in lossesActions taken Thursday by several brokerages further stoked the day-trader movement. Robinhood, Interactive Brokers, and others restricted trading of the volatile stocks, arguing the moves protected them and their clients from outsize risk.