U.S. stocks advance as day-trader frenzy eases
Bloomberg News
VIDEO SIGN OUT
U.S. equities mounted a comeback from their worst loss since October as moves to limit retail tradersâ speculation in some companies opened the door for hedge funds to load up on stocks they had been ditching.
The S&P 500 Index rose 1 per cent after trading platforms restricted activity in stocks whipsawed by internet chatter, from GameStop Corp. to AMC Entertainment Holdings Inc. and American Airlines Group Inc. Hedge funds that had shorted the stocks were burned in recent days, forcing them to reduce holdings in shares they loved in order to cut risk.