After sliding for much of the Asian session, US equity futures reversed sharply and rose alongside European stocks, rising as much as 30 points from session lows and last trading fractionally in the green.
While yesterday’s main attraction, Gamestop, was up almost 20% in the premarket as reddit traders now appear to be going after Ken Griffin and Steven Cohen, who backstopped the effectively collapsed Melvin Capital.
Elsewhere, General Electric Co rose about 5% after reporting a better-than-expected free cash flow for the fourth quarter, as it benefits from a recovery at its power and renewable energy units. Tech heavyweights Microsoft Corp and Advanced Micro Devices Inc were slightly higher ahead of their earnings reports expected after markets close. With the S&P 500 trading at 22 times the 12-month forward earnings, concerns about stock bubbles among some of Wall Street’s biggest banks sparking fears of a pullback. After a “buy everything” rally over several months supported by money-printing pandemic stimulus packages, near-zero interest rates and the start of COVID-19 vaccination programmes, some investors are worried markets may be near ‘bubble’ territory. They point to rocketing prices of assets such as bitcoin or, on Monday, the soaring stock of short-squeezed videogame retailer Gamestop.