What's Going On With GameStop Shares?

BY Benzinga | TREASURY | 04/19/22 03:05 PM EDT

Shares of several companies in the retail & apparel sector, including GameStop Corp. (NYSE:GME), are trading higher amid overall market strength as traders assess Fed policy outlook, rising Treasury yields and quarterly earnings reports.

GameStop shares have also experienced marked strength over the past month, trading higher by 60.19%, despite continued concerns over Fed tapering in order to combat inflation. GameStop shares saw heavy volume in March and were trading sharply higher throughout the month after Chairman Ryan Cohen purchased after 100,000 additional shares of the company's common stock.

Investors continue to assess upcoming corporate earnings in April while a new 2-year high of 2.930% for the U.S. 10-Year Treasury Tuesday has otherwise not impacted the broader market for the session. In general, when interest rates rise, the value of future cash flows is reduced for stocks, which in turn lower the value of the stock.

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According to data from Benzinga Pro, GameStop is trading higher by 6.70% at $150.90.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.