Dow Jones rises 475 points as markets rally from GameStop short squeeze

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Feb. 2 (UPI) — U.S. markets continued to rebound on Tuesday as all three major indexes rose for the second day while stocks boosted by Redditors fell.

The Dow Jones Industrial Average rose 475.57 points, or 1.57%, while the S&P 500 gained 1.39% and the Nasdaq Composite grew 1.56%.


Exxon Mobil stock rose 1.58% despite reporting a loss of $20.1 billion, its fourth consecutive quarter of losses, while Google‘s parent company, Alphabet, increased 1.38% and Amazon gained 1.11% as they reported earnings after the final bell.

Amazon dropped 0.27% in after-hours trading as Jeff Bezos announced he would step down as CEO of the company.

Markets also reacted to the continued decline of stocks targeted by members of the r/WallStreetBets subreddit as GameStop declined 60%, falling below $100 per share, and AMC Entertainment dropped 41.2%.

Silver prices also fell on Tuesday after members of the group shifted their focus to the metals market this week.

“Inevitably, and as with any technically-driven short squeeze, the Reddit rocket ship ran out of fuel and is now crashing back down to earth,” Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, told CNBC. “Upon seeing that gravity still works and fundamentals do matter, other market participants are once again comfortable going back into the market and that’s likely been driving this week’s comeback rally.”