Dow slides 200 points on concerns of retail investors’ speculative trading

Dow slides 200 points on concerns of retail investors’ speculative trading

A man sits on the Wall street bull near the New York Stock Exchange (NYSE) on November 24, 2020 in New York City.

Spencer Platt/Getty Images

US equities slid on Friday as investors braced for more day trader-fueled volatility and balked at Johnson & Johnson's COVID-19 vaccine data.Reddit traders drove GameStop, AMC, and other favorites higher after brokers removed some trading restrictions.Johnson & Johnson said its vaccine was 66% effective, but data suggests the shot is less beneficial against the South African virus strain.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks fell on Friday as investors shunned retail traders' speculative bets and disappointing vaccine data from Johnson & Johnson.

GameStop, AMC, and other Reddit-favorite stocks rebounded as day traders piled back into their risky positions. The highly volatile names have taken center stage in the market, and moves from Robinhood, Interactive Brokers, and other platforms to restrict trading have been met with calls for Congressional hearings and reform.

Market participants fear the retail traders' targeting of shorts could force hedge funds to cover their bearish bets by selling their long positions. While the phenomenon has only rocked some funds, strategists have raised concerns over a growing market