Dow Up 600 Points Ahead of Tech Earnings, GameStop Plummets

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Stocks rose sharply Tuesday as hopes grew for more U.S. stimulus, progress was made on vaccinations and investors looked ahead to earnings from tech giants Amazon.com and Alphabet .

© TheStreet Stocks Rally Ahead of Tech Earnings and as Retail Trading Frenzy Fades

The Dow Jones Industrial Average jumped 560 points, or 1.86%, to 30,772, the S&P 500 rose 1.6% and the Nasdaq gained 1.48%.

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Stocks were on track for their biggest gains in three months.

Shares of GameStop slumped Tuesday and silver pulled back from an eight-year high as it appears frenzied retail trading that has gripped the markets over the past two weeks was fading.

GameStop, AMC and Silver Fall as Reddit-Fueled Frenzy Fizzles

President Joe Biden held what was described as a productive meeting with 10 moderate Republican senators to discuss stimulus options. The president is pushing for a coronavirus relief package of $1.9 trillion, while Republicans have countered with an offer of $600 billion.

Following Monday’s meeting, Biden’s press secretary said the president intended to continue pressing for a larger bill, even if it didn’t come with Republican support.

“The sound of more stimulus, which tends to raise all boats, was music to the market’s ears,” said Stephen Innes, chief global market strategist of Axi.

On the virus front, more Americans have received at least one dose of a Covid-19 vaccine than have tested positive for the virus.

According to Bloomberg, 26.5 million Americans had received one or both doses of the current vaccines, while 26.3 million people have tested positive for Covid-19, the disease caused by the coronavirus.

More than 443,000 people in the U.S. have died from the virus, according to data from Johns Hopkins University.

GameStop was down almost 52% on Tuesday and earlier in the session was halted for volatility after falling more than 60%. The video game retailer, and other heavily shorted names such as AMC Entertainment and Koss Corp. , have seen manic gains in recent weeks, fueled largely by online communities such as Reddit’s WallStreetBets forum.

Silver prices fell Tuesday after the Chicago Mercantile Exchange lifted margin requirements.

United Parcel Service posted a $3.3 billion fourth-quarter loss but adjusted earnings that were well above Wall Street forecasts as the pandemic continued to drive consumers and businesses to rely on Big Brown, particularly during the holidays.

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This article was originally published by TheStreet.

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