GameStop Corp. shares jumped for a second day Thursday as momentum surrounding the stock continued to build and derivatives activity heated up.
Shares of the videogame retailer finished the day up 19% to close at $108.73 after surging to as high as $184.68 in intraday trading. The gains followed an eye-popping performance from GameStop in the final hour of trading Wednesday, causing the stock to more than double for the day.
Thursday’s gains stood in contrast to the rest of the market: Major stock indexes tumbled Thursday, with the S&P 500 losing 2.4% as the yield on the 10-year Treasury note marked its biggest one-day advance since November and settled at its highest level in a year.
This week’s rally in GameStop is similar to last month’s blockbuster gains that were fueled by individual investors who touted the stock on Reddit’s WallStreetBets forum and other social-media platforms. The stock climbed as high as $483 in intraday trading in late January before falling back to around $40 last week.
The latest surge mystified many on Wall Street who were scrambling to identify a catalyst for the sudden moves. Analysts, traders and market observers said the run-up appeared to be the result of renewed interest from investors that was likely exacerbated by activity in the options market.