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Global Market Square

By on February 2, 2021

The U.S., European and Asian stock markets ended with gains for a second day in a row, recovering their more usual rhythm after last week’s GameStop, Reddit and RobinHood-spurred volatility.

As we had much anticipated, the GameStop carnage that began Monday spilled over to Tuesday’s session, and the market is right-sizing the stock to its real value.

GameStop, which was trading on Jan. 4 at $17.25, rose to $347.51 by Jan. 27, driven by a legion of day traders that had congregated in the millions on the social media site Reddit. In the last two days, the stock, which opened Monday trading at $325, by the closing bell Tuesday had lost $238.49, to close at $86.51.

Where will it end? Just like river water rises when there is too much rain, this stock will end up trading near its normal levels of $15 to $18 per share, if not less.

The focus is now more on the vaccine distribution challenges as the number of vaccinations rises and new infection cases and related deaths decline.

Wall Street summary for February 2, 2021,

  • The Dow Jones Industrial Average closed at 30,687.48, up 475.57 points, or 1.57%.
  • The Standard & Poor’s 500 closed at 3,826.31, up 52,45 points, or 1.39%.
  • The Nasdaq Composite Index closed at 13,612.78, up 209.38 points, or 1.56%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,056.39, up 51.77 points, or 2.59%.
  • The U.S. Treasury 10-year note closed at 1.12%
  • The U.S. Treasury 2-year note closed at 0.11%

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