Stocks set to bounce back
U.S. stocks are expected to start open higher on Monday after suffering their worst week since October amid a retail-trading frenzy.
This week, traders are expecting a slew of major earnings reports from companies such as Alphabet Amazon (NASDAQ: AMZN), Pfizer (NYSE: PFE), Exxon (NYSE: XOM) and Google-parent Alphabet (NASDAQ: GOOG).
However, volatility is not expected to increase this week as many hedge funds have already trimmed short positions on stocks that have been a target of the retail frenzy.
At 5:30 a.m. ET, futures tied to the blue-chip Dow indicated a gain of 203 points, or 0.68% to 30,082. Those for the S&P 500 gained 33.13 points, or 0.89% to 3,738.38 while the tech-heavy Nasdaq 100 futures jumped 127 points, or 0.98% to 13,038.25.
Reddit frenzy pushes silver prices higher
Silver futures also soared early Monday as the Reddit frenzy that roiled stock markets last week spilled over into physical assets.
Retail traders, buoyed by the Reddit forum r/wallstreetbets, stormed into the silver market and shored up prices of silver futures, ETFs, and miners. As of writing, silver futures were up $2.90, or 10.78% to $29.81.
Spot silver prices were up 8.9% to $29.40 per ounce, while iShares Silver Trust ETF, was up 9.25% to $27.29.
Robinhood trims trading restrictions to 8 stocks
Trading platform Robinhood has narrowed the number of stocks with trading restrictions to eight from 50.
The list now includes GameStop (NYSE: GME), AMC (NYSE: AMC), Blackberry (NYSE: BB), Express (NYSE: EXPR), Genius Brands (NASDAQ: GNUS), Koss (NASDAQ: KOSS), Naked Brand (NASDAQ: NAKD), and Nokia Oyj (NYSE: NOK).
Robinhood, which has grown in popularity among young traders by offering commission-free trading, announced the decision on its website adding that the “limits may be subject to change throughout the day.”
The restrictions cover the adding of options and shares to positions, and they don’t affect positions already held by a trader.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) said on Friday that it was reviewing trading curbs imposed by online brokerage companies and act on any evidence of market manipulation after Reddit users sent some heavily shorted stocks extremely higher.
