The White House is monitoring the wild and ever-changing situation with video game retailer GameStop’s stock price. White House press secretary Jen Psaki confirmed this during her daily briefing on Wednesday, telling reporters that US Secretary of the Treasury Janet Yellen and her team are watching what’s going on, though there is no word on if any action will be taken.
“Our team, our economic team including [Secretary of the Treasury Janet Yellen] and others, are monitoring the situation. It’s a good reminder, though, that the stock market isn’t the only measure of the health of our economy,” Psaki said.
GameStop’s stock price has exploded in recent days due in part to the WallStreetBets subreddit taking on hedge funds and short-sellers who bet against the retailer. It is a complicated and involved situation, and it’s led to a wider discussion around how online chatter can, in real time, impact the stock market and in turn the US economy. Members of WallStreetBets are now seemingly turning their attention to the struggling movie theatre chain AMC, which is another stock that hedge funds have shorted in recent weeks due to the COVID-19 pandemic.
Online trading sites including TD Ameritrade and Schwab are now restricting trading for GameStop, AMC, and other volatile stocks, according to MarketWatch.
Reports have suggested that GameStop short-sellers have lost $5 billion thanks in part to the action on Reddit. It’s not clear how this will all play out, but it’s a situation we’re keeping our eyes on, so keep checking back with GameSpot for more.