Outside the GameStop Bubble, Stocks Have Concerns
The reflation trade is suffering some doubts, if you can tear your eyes away from an epic short squeeze.
Life goes on, even while the short-sellers’ Bastille is being stormed.
Photographer: Rischgitz/Archive Photos/Getty Images
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Call it World-Weary Wednesday. The Federal Reserve held its first monetary policy meeting of the year and made clear that it was prepared to keep pumping money into the economy for even longer; the S&P 500 had its worst day since the election, falling more than 2.5%; and Apple Inc., Tesla Inc. and Facebook Inc., three of the six biggest companies in the U.S., revealed annual results to a frosty reception from investors. All the while, the Covid-19 pandemic raged on. And yet seemingly everyone in the market was transfixed by the price action in a company that started last month valued at less than $1 billion.