Dow soars 300 points as day-trader restrictions soothe market nerves
- US stocks gained on Thursday as several brokerage firms placed trading restrictions on a handful of volatile stocks popular with Reddit traders.
- Weekly jobless claims fell to a three-week low, suggesting a recovery in the labor market is underway.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
View all Offers
- 16% OFF
Oppo A16 (Pearl Blue, 4GB RAM, 64GB Storage) with No Cost EMI/Additional Exchange Offers₹ 13490₹ 16990Buy On
- 29% OFF
Samsung Galaxy M32 5G (Sky Blue, 6GB RAM, 128GB Storage)₹ 16999₹ 23990Buy On
- 17% OFF
Redmi Note 10 Pro Max (Glacial Blue, 6GB RAM, 128GB Storage) -108MP Quad Camera|120Hz Super Amoled Display₹ 18999₹ 24999Buy On
- 8% OFF
OnePlus 9R 5G (Lake Blue, 8GB RAM, 128GB Storage)₹ 36999₹ 39999Buy On
Redmi Note 10T 5G (Mint Green, 4GB RAM, 64GB Storage) | Dual5G | 90Hz Adaptive Refresh Rate | MediaTek Dimensity 700 7nm Processor₹ 14499₹ 18999Buy On
US stocks moved higher on Thursday as several brokerage firms placed trading restrictions on a handful of volatile stocks popular with Reddit traders.
Robinhood, Interactive Brokers, and Webull restricted its users from buying volatile stocks that have been in a short squeeze fueled by traders on Reddit's Wall Street Bets forum.
Additionally, weekly jobless claims fell to a three-week low, hitting 847,000. That is better than analysts' expectations of 875,000 jobless claims and represented a 7% decline from last week's figure.
Continuing claims, which track Americans receiving unemployment-insurance payments, dropped to 4.8 million for the week that ended January 16. Economists expected continuing claims to total 5.1 million.
Here's where US indexes stood after the 9:30 a.m. ET open on Thursday:
- S&P 500: 3,787.33, up 0.97%
- Dow Jones Industrial Average: 30,603.92, up 0.99% (300.75 points)
- Nasdaq composite: 13,337.16, up 0.5%
The epic short squeeze in GameStop briefly continued in early Thursday trades, with shares soaring as much as 40% to almost $500 in the premarket session. But Robinhood's decision to limit trading in the stock deflated Thursday's rally, with the stock ultimately falling more than 30%.
American Airlines benefited from Reddit traders pitching the stock as a short-squeeze candidate. The stock soared as much as 31% after the company reported better-than-expected fourth-quarter earnings.
Apple's fourth-quarter earnings report beat analyst expectations by a mile, but the stock still traded lower by about 1%. Tesla fell 4% on Thursday after the company's fourth-quarter earnings report failed to meet analyst expectations.
Gold dropped 0.16% to $1,841.80 per ounce.
Read more: Billionaire investor Mario Gabelli started investing when Eisenhower was president. He told us how he leverages almost 5 decades of experience to identify winning stocks - and shared 5 of his favorite picks.
- A CryptoPunk NFT bought for $74 resurfaced after four years and just sold for $2 million
- Best DIY wallpapers to revamp your house
- India's largest car maker loses nearly two thirds of its profit to chip shortage
- New Range Rover: Check out expected price in India, features and other details
- Softbank will make $250 million by selling a fifth of its stake in Policybazaar