Stock futures ticked up slightly Monday evening, adding to gains after a rebound rally during the regular trading day.
Silver futures (SI=F) fell more than 1.5% shortly after 6 p.m. ET, after derivatives exchange CME Group increased margins on Comex silver futures by nearly 20%, Bloomberg reported Monday, in a move that will increase the cash needed to trade the contracts. The commodity soared earlier in the day to breach $30 per ounce, touching its highest level in eight years as some online traders pivoted to target silver after last week’s surge in heavily shorted stocks.
Many of the stock picks popularized on Reddit’s r/wallstreetbets forum last week dropped on Monday and extended losses in late trading. GameStop (GME) sank nearly 20% in after-hours trading following a 31% slide during the regular session, which brought the stock down to $225 per share from a peak of $483 last week. AMC (AMC), Express (EXPR) and Koss Corporation (KOSS) also added to losses.
Some strategists have begun raising concerns over the volatility around a broadening number of stocks, commodities and cryptocurrencies, especially as the ballooning prices appeared detached from traditional measures of asset valuation. Bank of America strategists on Monday drew comparisons between trading today to the dot-com bubble around 2000, which had also been marked by increasing retail participation, rich valuations and euphoria around stocks.
Others, however, have remained as yet unworried about spillover of the Reddit-fueled trading volatility into the broader stock market.
“So far the good news is unlike, say, 1999 to 2000, the big heightened speculative activity is not in the big major stocks driving the S&P 500. So maybe that’s one saving grace,” Liz Ann Sonders, chief investment strategist for Charles Schwab, told Yahoo Finance on Monday. “There’s no question there’s a lot of micro-bubbles. I’m not sure we’re quite yet there in terms of the broader market.”
Some of the larger stocks in the S&P 500 are poised to report quarterly results on Tuesday, including Pfizer (PFE) before market open and Amazon (AMZN) and Alphabet (GOOGL) after market close.
6:11 p.m. ET Monday: Stock futures point higher
Here’s where markets were trading on Monday evening as overnight trading kicked off:
S&P 500 futures (ES=F): 3,768.25, up 2.5 points or 0.07%
Dow futures (YM=F): 30,131.00, up 21 points or 0.07%
Nasdaq futures (NQ=F): 13,257.75, up 21.25 points or 0.16%
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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