NYSE:GME snapped its three-day losing streak following its 4 for 1 stock split, and rose alongside the broader market rally. On Wednesday, shares of GME added 4.16% and closed the trading session at $33.78. All three major indices jumped higher and accelerated their gains into the closing bell. The Fed raised interest rates by a further 75 basis points, although Fed Chairman Jerome Powell hinted that if inflation is under control, the Fed could slow the pace of its hikes. Following the news, the Dow Jones rose by 436 basis points, the S&P 500 gained 2.62%, and the NASDAQ jumped higher by 4.06% during the session.
Retail stocks shrugged off a stark warning from WalMart (NYSE:WMT) on Tuesday after the retail giant lowered its guidance for the quarter and the rest of 2022. Still, on Wednesday, investors bought the dip as WalMart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), and Home Depot (NYSE:HD) all rebounded during the session. Chairman Powell’s comments revealed that the Fed does not believe the US economy is currently in a recession. Whether they believed it or not, investors were buying up the rare dip in these blue-chip stocks.
GameStop’s chief NFT marketplace rival Coinbase (NASDAQ:COIN) saw its stock fall by more than 20% earlier in the week. The reason was the announcement of an SEC probe into some of the cryptocurrencies it lists on its exchange. An ex-Coinbase manager was also charged with insider trading recently. All of the negative news has led Ark Invest to dump its stake in Coinbase. Shares were up by 11.15% on Wednesday.
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