Shares of GameStop and other high-flying stocks tumbled Tuesday in erratic trading following a recent standoff between small investors and hedge funds that has captivated Wall Street.
GameStop sank 60% to $90 a share, and has shed more than 70% of its value since Friday's close. The stock gyrated throughout the morning, briefly falling as low as $74.22 shortly after the opening bell before paring declines.
GameStop ended last year at about $18 and briefly hit a price of $500 a share last week. After the losses over the past two days, the struggling video-game retailer's market value sits at just over $6 billion, down from $24 billion last Wednesday.
AMC Entertainment lost ground as well, dropping 41% to $7.82.
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U.S. markets have been roiled by trading in GameStop, AMC and some other speculative stocks after an online community of investors on Reddit pushed the stocks to astronomical levels.
An online army of traders using the online site banded together the past two weeks to snap up shares of GameStop, AMC and other struggling chains, stocks that have been heavily shorted by a number of hedge funds that had bet those stock prices would fall. In the process, they’ve done heavy damage to those hedge funds in a stunning reversal of financial power on Wall Street.
Elsewhere, the price of silver retreated from an eight-year high Tuesday. Last week, messages on social media encouraged small investors to buy silver. It shot up Monday, but many online investors said they weren't the ones bidding up the price.
Smaller traders are learning “the silver market is much bigger than some of the small cap stocks they have been trading,” said Edward Moya of Oanda in a report. “Silver coin purchases and call option bets are not enough of a driver to send silver prices skyrocketing to record high levels.”
Silver for March delivery sank 8.3% to $27.04 per ounce.
Major indexes rose broadly Tuesday, with the Dow Jones Industrial Average climbing 475.57 points, or 1.6%, to 30,687.48, after concerns about the retail trading frenzy abated. The S&P 500 added 1.4% to 3,826.31, building to its gains from a day earlier. The tech-heavy Nasdaq Composite rose 1.6% to 13,612.78.
Big Tech companies were among the earlier winners, as were several energy companies, including Exxon Mobil and Marathon Petroleum, both of which reported better quarterly results than analysts were forecasting.
Uber rose 7% after the company said it would buy liquor delivery service Drizly for $1.1 billion in cash and stock.
Treasury yields rose, as did crude oil prices.
Contributing: The Associated Press
This article originally appeared on USA TODAY: GameStop stock plummets, shedding two-thirds of its value in two days