China’s property support measures disappoint, developers’ shares falter

HONG KONG – Shares of Chinese developers wobbled on Monday as investors fretted that China’s “historic” steps to stabilize its crisis-hit property sector fell short of what is required to foster a sustainable turnaround in demand and confidence.

Hong Kong’s Hang Seng Mainland Properties Index closed down 0.7%, after having gained around 18% so far this month after the Politburo said in an April 30 meeting that it would coordinate to clear housing inventory.

Embattled state-backed developer China Vanke eased 0.2%, after bouncing as much as 6.4% in the morning session. Shimao Group, R&F Properties, Kaisa Group, and KWG Group were down more than 10% each.

China unveiled measures on Friday to facilitate up to 1 trillion yuan (USD 138 billion) in funding and ease mortgage rules, with local governments set to buy “some” apartments.

As part of those steps, the central bank said it would set up a 300 billion yuan (USD 41.49 billion) relending facility for state-owned enterprises (SOEs) to purchase completed and unsold homes at “reasonable prices” for affordable housing.

The central bank expects the relending program would result in 500 billion yuan worth of bank financing.

Friday’s announcement came after waves of policy support measures over the past two years failed to revive the sector, which at its peak accounted for a quarter of national GDP and remains a major drag on the world’s second-biggest economy.

While a housing ministry publication described the latest policies as a “historic moment” for the industry, many China watchers were more circumspect in their assessment.

Analysts said the central government’s decision to step in as a buyer marked an important step but noted that the size of financing on offer pales in comparison to the estimated trillions of yuan worth of housing inventory across the country.

There were 391 million square meters (4.2 billion square feet) of new housing for sale in January-April, up 24% year-on-year, the latest official data show, equivalent to 6.6 Manhattans Tianfeng Securities estimates it will cost around USD 1 trillion to buy the entire stock.

Bank of America head of Greater China property research, Karl Choi, noted that social housing programs are only mandated in larger cities, estimating that the 500 billion funding could purchase up to 15% of inventory in tier-2 cities at a deep discount.

Macquarie economists say Beijing’s previous statements suggested 18 months of inventory clearing may be the government’s policy goal, versus the current timeframe of 28 months to clear the stock.

Achieving the policy goal will cost an estimated 2 trillion yuan, they said.

“Given its limited size and the various challenges in execution, it alone is unlikely to solve the problem,” Larry Hu, the bank’s chief China economist said in a report. “But it’s encouraging that policymakers are moving in this direction after failures in the previous years.”

Analysts compared the latest 300 billion relending facility to another 100 billion yuan facility introduced in January 2023 for eight pilot cities to purchase inventory for subsidized rental housing. So far, only around 2 billion yuan have been drawn down by January this year, official data showed, highlighting the lack of incentives and participations from the market.

Local governments, already some USD 9 trillion in debt, may be reluctant to expand their social housing projects which provide low returns, and banks would also be hesitant to lend to potentially loss-making businesses.

Bank of America’s Choi also said the duration of this lending, designed to be a maximum of five years, is too short for the payback period for a rental housing project, which could be a concern for SOEs and commercial banks.

Goldman Sachs expected it would take nine months to stabilize China’s property prices if the government launches a full-scale program to reduce inventory.

“Much depends on execution,” the US investment bank said. “Despite policymakers signaling a more supportive stance, the effectiveness of any new measures will hinge on how quickly and easily they can be implemented.”

Reviving homebuyer confidence is still the key to a property recovery, analysts say.

Li Gen, chairman of Beijing G Capital Private Fund Management Center LLP, said few entities will be motivated by Friday measures under current market conditions.

“The demand for property is weak with many people concerned about jobs and incomes in future.”

(USD 1 = 7.2302 yuan)

(Reporting By Hong Kong and Shanghai newsrooms; Editing by Anne Marie Roantree, Shri Navaratnam, and Louise Heavens)

Asian stocks eye best run since 2021

Investors’ appetite for stocks and risk assets shows no sign of waning which, in the absence of any major market-moving economic data or events in Asia on Tuesday, should pave the way for further gains across the continent when trading gets underway.

Monday’s global market moves encapsulated the ‘FOMO’ that seems to be fueling the ongoing risk rally – volatility, the dollar, bond yields, and geopolitical uncertainty all rose to varying degrees, yet equities marched higher regardless.

‘Fear of missing out’ – which some might say isn’t all that far removed ‘irrational exuberance’ – is a powerful force. But it can also be a red flag, especially when long-time market bears join the frenzy.

Morgan Stanley’s US equity strategist Mike Wilson has not been the only Wall Street bear over the last couple of years, but he has certainly been one of the most prominent.

On Monday, he and his team raised their base-case, 12-month forecast for the S&P 500 to 5400 points. That’s only up around 2% from Friday’s close, but 20% higher than their previous forecast of 4500.

Only time will tell if Wilson’s about-turn will be an indication that investors’ exuberance has become irrational. Right now, however, at least until chipmaker Nvidia’s earnings on Wednesday, market bulls are firmly in control.

And Asia is enjoying the ride too.

The MSCI Asia ex-Japan equity index on Monday rose to a two-year high with its seventh consecutive rise, its best run since January last year. Another increase on Tuesday will seal its best run since August-September 2021.

Japan’s Nikkei is back above 39,000 points for the first time in over a month, and the dollar is back above 156.00 yen. The dollar is now within one yen, more or less, of where Japanese authorities are widely thought to have conducted yen-buying intervention on May 1.

Intervention seems unlikely right now, but currency traders will not be complacent. The latest Commodity Futures Trading Commission data show that speculators reduced their net short yen positions for a third week, but not by much.

The main event on the Asian and Pacific calendar on Tuesday is the release of the minutes from the Reserve Bank of Australia’s May 7 policy meeting.

The RBA quashed market talk at the time of a near-term interest rate hike but also didn’t hold out much chance of a cut for months to come. The Aussie dollar has regained its poise since then to climb to a four-month high just above $0.67.

Australian rates markets are not fully pricing in a 25-basis point rate cut until April next year.

Here are key developments that could provide more direction to markets on Tuesday:

– Reserve Bank of Australia meeting minutes

– Australia consumer sentiment (May)

– Indonesia’s government presents 2025 economic forecasts to parliament

(Reporting by Jamie McGeever)

Dollar mostly flat as market mulls inflation outlook

NEW YORK/LONDON – The dollar retreated against major currencies on Friday as market speculation continues to swirl about the timing of Federal Reserve interest rate cuts amid signs of cooling yet persistent inflation and a softening US economy.

While consumer prices for April, reported on Wednesday, rose less than expected – leading to a risk-on flavor in equity markets – various Fed officials have sounded words of caution about when rates may fall, limiting the dollar’s decline this week.

The dollar index, which tracks the US currency against six peers, slid 0.04% to 104.44 after earlier trading about 0.3% higher.

“The market has turned cautious on the prospect of rate cuts in the near term. The overall picture, though, does appear consistent with a fading of the US exceptionalism trade,” said Karl Schamotta, chief market strategist at Corpay in Toronto.

“We are seeing signs of slowing momentum in the US economy,” Schamotta added. “All of that is translating into less upward pressure on the dollar at the same time you are seeing a brightening of prospects elsewhere.”

Futures markets reduced the outlook for lower US rates, with less than 45 basis points of cuts seen by December, down from almost 50 on Wednesday, and a cut of 21 bps in September, down from almost 25 bps.

“The market over-reacted perhaps on Wednesday, and now we’re seeing a little bit of that over-reaction come off and that inflation could re-accelerate,” said Matt Weller, global head of research at FOREX.com in Grand Rapids, Michigan.

US inflation accelerated in the first quarter amid strong domestic demand after moderating for much of last year. Last month’s slowdown was a relief after data on Tuesday showed a jump in producer prices in April.

Policymakers said on Thursday that still-high inflation warrants keeping rates at current levels, and that reaching the Fed’s 2% inflation target will take longer than previously thought.

A surprisingly large 0.9% jump in import prices on Thursday kindled worries that rising import costs will only add to inflationary pressures.

Even though markets are pricing European rate cuts beginning in June, recent data has shown some upside surprises. Germany’s economy grew more than expected last quarter and investor morale is at a two-year high.

Eurozone consumer inflation data on Friday came in at 2.4% year-on-year in April, in line with a Reuters poll.

The euro rose 0.06% against the dollar to USD 1.0872.

Eurozone policymakers have increased confidence that inflation will ease back to target next year due to easing price pressures, ECB Vice-President Luis de Guindos said on Friday.

Largely disappointing Chinese data on Friday helped keep market risk sentiment in check. Factory output topped forecasts but retail sales slowed and home prices fell at their fastest pace in more than nine years.

Sterling rose 0.31% to USD 1.2705, while the dollar gained 0.17% on the Japanese yen at 155.64.

In cryptocurrency markets, bitcoin was up 1.89% at USD 66,517.00.

(Reporting by Herbert Lash, additional reporting by Iain Withers and Tom Westbrook in Singapore; Editing by Timothy Heritage, Will Dunham, and Emelia Sithole-Matarise)

Oil gains 1% on hopes of firmer demand

NEW YORK – Oil prices settled about 1% higher on Friday, with global benchmark Brent crude recording its first weekly gain in three weeks, after economic indicators from the world’s top two oil consumers – China and the US – bolstered hopes for higher demand.

Brent settled 71 cents higher, or 0.9%, at USD 83.98 a barrel. US West Texas Intermediate crude (WTI) gained 83 cents, or 1.1%, to USD 80.06.

For the week, Brent gained about 1%, while WTI rose 2%.

China’s industrial output rose 6.7% year-on-year in April as a recovery in its manufacturing sector gathered pace, pointing to possibly stronger demand to come. China also announced major steps to stabilize its crisis-hit property sector.

The Chinese figures showed potential for demand construction and supported oil prices, said Bob Yawger, director of energy futures at Mizuho. However, government data showing a drop in China’s annual refined output may have offset that support.

Declines in oil and refined product inventories at global trading hubs have also created optimism about demand, reversing a trend of rising stockpiles that had weighed heavily on crude oil prices in previous weeks.

The US oil rig count rose by one this week to 497, the first increase in four weeks, energy services firm Baker Hughes said.

Recent US economic indicators have fed into the optimism over global demand for oil. US consumer prices rose less than expected in April, data showed on Wednesday, boosting expectations of lower interest rates.

“Consumer prices were not as bad as expected,” said Tim Snyder, economist at Matador Economics. “It gave the US a little bit of a boost.”

Lower US interest rates could help soften the dollar, which would make greenback-denominated oil cheaper for buyers holding other currencies.

Meanwhile, a fire started at Russia’s Tuapse oil refinery overnight after a wave of Ukrainian drone attacks. The extent of the damage was unclear.

On the supply side, investors were mostly looking for direction from the upcoming OPEC+ meeting on June 1.

“With the price of Brent crude hovering below USD 90, a level quietly being targeted by Saudi Arabia and others, the upcoming OPEC+ meeting is likely to result in a rollover of current production cuts,” Saxo Bank analyst Ole Hansen said in a note.

Money managers raised their net long US crude futures and options positions in the week to May 14, the US Commodity Futures Trading Commission (CFTC) said.

(Reporting by Nicole Jao in New York, Robert Harvey, and Alex Lawler in London; additional reporting by Deep Vakil in Bengaluru, Shariq Khan in New York, and Trixie Yap in Singapore; editing by Bill Berkrot and Marguerita Choy)

US yields gain, Fed meeting minutes next week’s focus

US Treasury yields rose on Friday as investors awaited clues on how many times the Federal Reserve is likely to cut interest rates this year, with minutes due next week from the Fed’s most recent policy meeting being the next event that may offer new insight.

Softening consumer prices in April boosted expectations that the US central bank will be able to cut rates two times this year, beginning in September. But traders are also wary that this will depend on price pressures continuing to ease over the coming months.

“The Fed obviously hopes that the inflation data comes down quickly, as does the market, and reality is just a little slower,” said John Luke Tyner, fixed income analyst and portfolio manager at Aptus Capital Advisors in Fairhope, Alabama.

Data on Wednesday showed that the consumer price index (CPI) rose 0.3% last month for an annual gain of 3.4%, after advancing 0.4% in March and February. That remains above the Fed’s 2% annual target.

Fed policymakers also have not openly shifted views yet about the timing of rate cuts despite Wednesday’s improving inflation report.

Fed minutes due next Wednesday may offer more detail on what Fed officials are looking at in order to begin cutting rates. The meeting from April 30 to May 1, however, was before Wednesday’s CPI data.

“The timing is a little troubling for them because I imagine that the minutes will display some more hawkish commentary based on the first three months of the year,” Tyner said. “If we are seeing the data indeed slow down, maybe that could send kind of a mixed signal.”

The Fed indicated it is still leaning toward eventual reductions in borrowing costs at the meeting, but acknowledged that disappointing inflation readings in the first quarter could make those rate cuts a while in coming.

US Fed Governor Michelle Bowman on Friday repeated her view that inflation will fall further with the policy rate held steady, but said she has seen no improvement in inflation this year and remains willing to hike rates should progress stall or reverse.

Benchmark 10-year yields were last up 4 basis points at 4.42%.

Two-year yields rose 3 basis points to 4.825%.

The inversion in the yield curve between two-year and 10-year notes US2US10=TWEB narrowed 1 basis point on the day to minus 41 basis points.

The Treasury Department will sell USD 16 billion in 20-year bonds next Wednesday and USD 16 billion in 10-year Treasury Inflation-Protected Securities (TIPS) next Thursday.

(Reporting by Karen Brettell; Editing by Chizu Nomiyama and Will Dunham)

China stimulus, US rate cut bets lift gold, silver soars above $30 mark

Gold prices, aided by China’s stimulus measures, looked poised to clock their second consecutive weekly gain on Friday on renewed hopes for US interest rate cuts, with silver breaking the USD 30 barrier to hit an 11-year high.

Spot gold rose 1.5% to USD 2,412.83 per ounce by 1745 GMT, closing in towards an all-time high of USD 2,431.29 hit on April 12.

US gold futures settled 1.3% higher at USD 2417.40 per ounce.

“Gold is moving higher despite (an uptick in) the dollar and yields. I think in this instance, China stimulus has helped as we’re also seeing other (base) metals do very well,” said Bart Melek, head of commodity strategies at TD Securities.

The market was lifted after China, a major consumer of industrial metals as well as gold, announced “historic” steps to stabilize the crisis-hit property sector.

Spot gold prices are up over 2% so far this week.

Meanwhile, London’s gold price benchmark ended the week at a record high of USD 2402.60 per troy ounce, the London Bullion Market Association (LBMA) said.

“Ultimately gold is responding to the idea that US inflation is probably under control … any talk of a prolonged period of high interest rates is going to be mitigated,” Melek said.

Traders expect roughly two quarter-point cuts from the Fed this year, with November being the most likely starting point.

Lower interest rates tend to boost non-yielding bullion’s appeal.

Spot silver jumped 4.8% to USD 31.02 per ounce after breaking above a major resistance level of USD 30. The last time silver hit the USD 30 price level was in early 2021, but sustaining it for an extended period has eluded silver for more than a decade.

“Anytime we’re talking about China stimulating, that is accretive for platinum markets,” Melek said.

Platinum added 2.3% to USD 1,081.37, after hitting a one-year high on Thursday. The metal is up 9% so far this week due to continued structural deficits.

Palladium rose 1.2% to USD 1,007.

(Reporting by Harshit Verma and Rahul Paswan in Bengaluru; Additional reporting by Polina Devitt in London; Editing by Alan Barona)

China clouds darken market mood

Broadly speaking, the global backdrop for Asian markets is still bright, with investors confident that the Fed will soon cut US interest rates keeping the dollar, bond yields and volatility in check, and boosting risk assets.

But there’s a cloud that shows no sign of lifting: China. If anything, it’s getting darker.

The economic “data dump” from Beijing on Friday showed that China’s recovery is sputtering – investment growth slowed, retail sales expanded at the slowest pace since late 2022, and new home prices fell at the fastest rate in nine years.

Most alarming, the property sector bust is deepening. Granted, Chinese and Hong Kong shares jumped on Friday after Beijing unveiled a series of historic steps to stabilize the sector, but will the bounce last?

Even though the central bank said it is facilitating 1 trillion yuan in extra funding and easing mortgage rules, and local governments will buy some apartments, deep-rooted fundamentals of huge over-supply and weak demand remain.

Renewed concern over China’s growth raises the question of how Beijing will finance its fiscal support measures in the long term. China is sitting on more than USD 3 trillion of FX reserves. Is now the time for China to dip into that rainy day fund to prevent the property sector bust from bringing down the wider economy?

It’s unlikely, and Beijing may well default to ramping up exports as the preferred path to recovery. But that would not be welcomed by the United States, which last week imposed extra tariffs on USD 18 billion of imports from China.

These tariffs and the hardening battle lines between the West and China on trade are bound to feature prominently in next week’s meeting of G7 finance officials in Italy. US Treasury Secretary Janet Yellen will attend, but it is unclear if Fed Chair Jerome Powell will travel, after he tested positive for COVID-19.

That said, financial markets are enjoying a period of remarkable calm right now. Global FX volatility is the lowest in five weeks, US Treasury market volatility is at a six-week low, and the VIX index on Friday fell below 12 for the first time this year.

This low volatility environment is helping to lift US, European, and other stock markets to all-time highs.

The Asian economic calendar on Monday offers a decent serving of indicators for investors to get their teeth into, including: GDP from Thailand, current account and trade data from Indonesia, Malaysia, and Taiwan, and unemployment from Hong Kong.

China’s central bank is widely expected to keep its one- and five-year loan prime rates on hold again at 3.45% and 3.95%, respectively, after leaving its medium-term lending facility loans unchanged on Wednesday.

Pressure is mounting for a cut soon, though.

Here are key developments that could provide more direction to markets on Monday:

– Thailand GDP (Q1)

– Taiwan exports (April)

– Japan tertiary index (March)

(Reporting by Jamie McGeever; Editing by Lisa Shumaker)

Yields rebound from six-week lows as unemployment claims fall

US Treasury yields rebounded from almost six-week lows on Thursday after data showed jobless claims fell in the latest week and as Federal Reserve officials said they need to see further progress on inflation before cutting interest rates.

Benchmark 10-year yields also bounced after they briefly fell to the 200-day moving average, which is seen as a technical area of support.

The number of Americans filing new claims for jobless benefits fell last week to a seasonally adjusted 222,000, unwinding nearly half of the jump at the start of the month.

The jobs data underscores that the economy is strong enough to allow the Fed to keep rates steady as they wait for more confirmation that inflation will continue to recede.

“Things are still moving along and the Fed is on hold for now, and they claim they are going to be on hold for a while,” said Ellis Phifer, managing director of fixed income research at Raymond James in Memphis, Tennessee.

Bonds rallied earlier on Thursday and yields hit their lowest levels since April 5 as traders boosted bets that the Federal Reserve will cut rates two times this year, with the first cut likely in September.

That followed data on Wednesday showing the consumer price index rose 0.3% last month after advancing 0.4% in March and February. The core CPI rose 0.3% in April after advancing 0.4% for three straight months.

“Yesterday’s news was good in the sense that it wasn’t hotter than expected,” said Phifer.

Traders are closely watching inflation for signs that price pressures are moving back closer to the Fed’s 2% annual target. Stronger-than-expected price gains in the first quarter raised doubts that the US central bank will be able to cut rates in the coming months.

Analysts say that while Wednesday’s data could give the Fed some confidence inflation is improving, they will need to see further easing in price pressures before cutting rates.

New York Fed President John Williams said that the data is not enough to call for the US central bank to cut interest rates sometime soon.

Richmond Fed President Thomas Barkin also said that inflation is still not where the Fed needs it to be, while Cleveland Fed President Loretta Mester said that holding US central bank policy at current levels will help get still-high inflation back to the 2% target.

Other data on Thursday suggested the economy lost further momentum early in the second quarter with single-family homebuilding falling for the second straight month in April and permits for future construction hitting an eight-month low. Output at factories unexpectedly fell.

Benchmark 10-year yields were last up 2 basis points on the day at 4.377% after earlier falling to 4.313%, the lowest since April 5. They are now trading back above the 200-day moving average of 4.331%, after briefly trading below it.

Two-year yields rose 6 basis points to 4.793% after earlier reaching 4.705%, also the lowest since April 5.

The inversion in the yield curve between two-year and 10-year notes widened 4 basis points on the day to minus 42 basis points.

(Reporting By Karen Brettell; additional reporting by Terence Gabriel; editing by Jonathan Oatis and Lisa Shumaker)

Oil up after US economic data strengthens rate cut expectations

NEW YORK – Crude prices edged up on Thursday after data showed a stabilizing US job market, fueling expectations that the Federal Reserve could begin to cut interest rates in autumn, which should stimulate the economy and boost oil demand.

Brent crude futures settled 52 cents, or 0.6%, higher at USD 83.27 a barrel, while US West Texas Intermediate crude (WTI) ended at USD 79.23, up 60 cents, or 0.8%.

The number of Americans filing new claims for unemployment benefits fell last week, pointing to an underlying strength in the labor market.

“Even though the jobless claims were low, the report was weak enough that it’s going to allow the Fed to get in and cut,” said John Kilduff of Again Capital. “The strong employment trends do portend strong gasoline demand as we look out, even though it has been lackluster.”

Wednesday’s slower-than-expected US inflation data for April also fed market expectations for a September cut in interest rates, which could temper dollar strength and make greenback-denominated oil more affordable for holders of other currencies.

Equities, which tend to move in tandem with oil prices, rose on the rate cut hopes, with the Dow reaching an all-time high of 40,000 for the first time.

Brent had touched an intra-day low of USD 81.05 on Wednesday – the lowest the front-month futures contract has traded since Feb. 26. It then rebounded after the inflation data and a government report showing a drawdown in US crude, gasoline, and distillate inventories last week due to a rise in both refining activity and fuel demand.

US gasoline demand, however, continued to land under 9 million barrels per day for a sixth straight week, below what is typical heading into the summer driving season, which officially kicks off on the Memorial Day weekend at the end of the month.

“This increase in the runs that will likely persist into early next month will be going head-to-head with continued weak product demand that is showing no sign of improvement,” said Jim Ritterbusch of Ritterbusch and Associates.

In the Middle East, Israel’s tanks pushed into the heart of Jabalia in northern Gaza on Thursday while, in the south, its forces pounded Rafah without advancing, Palestinian residents and militants said.

Ceasefire talks mediated by Qatar and Egypt are at a stalemate, with Hamas demanding an end to attacks and Israel refusing until the group is annihilated.

(Additional reporting by Noah Browning, Katya Golubkova in Tokyo and Emily Chow in Singapore; Editing by Marguerita Choy and Susan Fenton)

US stocks lose steam after Dow hits milestone 40,000 mark

NEW YORK – US stocks closed lower on Thursday after the Dow reached an intra-day high of 40,000 for the first time, as investors continued to recalibrate their rate-cut expectations following data showing a slowdown in inflation, as well as strong corporate earnings results.

Early gains in equities dissipated throughout the day, however, with the three major indexes closing slightly lower.

The blue-chip index has recovered from its October 2022 lows, powered by resilient US economic growth despite steep rate hikes by the Fed.

Ten out of 11 S&P 500 sectors closed lower, with stocks in consumer staples the only top gainer.

“We’ve had a big rally and people are looking at multiples, saying ‘we’ve got great earnings growth this year and next year but it’s still priced in at 21 or 22 times forward earnings,'” said Thomas Hayes, chairman of Great Hill Capital in New York.

“We have a lot of good news and a lot of that is priced in and that’s what the market is grappling with right now,” Hayes added.

Investors are betting on two quarter-point interest rate cuts from the Federal Reserve this year, and estimate a 70% chance of the first reduction in September, according to the CME FedWatch Tool.

All three Wall Street indexes had reached record closes on Wednesday after data showed a smaller-than-expected rise in consumer prices in April, indicating that inflation had resumed its downward trend.

Data on Thursday also showed the number of Americans filing new claims for jobless benefits fell last week, though labor market conditions remain fairly tight even as job growth is cooling.

“The current environment seems to focus on what the Fed may or may not do, given that we had started the year with the expectation that the Fed will cut rates up to six times but that moved down more recently to one or two times,” said Silas Myers, chief executive and portfolio manager at Mar Vista Investment Partners in Los Angeles.

The Dow Jones Industrial Average fell 38.62 points, or 0.10%, to 39,869.38, the S&P 500 lost 11.05 points, or 0.21%, to 5,297.10 and the Nasdaq Composite lost 44.07 points, or 0.26%, to 16,698.32.

Walmart rose 7% after the retail giant raised its fiscal 2025 sales and profit forecast, betting on easing inflation to further boost demand for essentials.

Deere dropped 4.8% after the farm equipment maker trimmed its annual profit forecast for the second time.

US-listed shares of Swiss insurer Chubb gained 4.7% after Warren Buffett’s Berkshire Hathaway revealed a $6.7 billion stake in the company.

GameStop and AMC Entertainment slid 30% and 15%, respectively, with the so-called meme stocks extending Wednesday’s losses following a two-day rally sparked by the social media return of “Roaring Kitty” Keith Gill.

About 17.8 billion shares changed hands across US exchanges, compared with the average of about 11.5 billion shares over the last 20 sessions.

Declining issues outnumbered advancers by a 1.2-to-1 ratio on the NYSE. On the Nasdaq, 1,965 stocks rose and 2,301 fell as declining issues outnumbered advancers by a 1.17-to-1 ratio.

The S&P 500 posted 64 new 52-week highs and one new low while the Nasdaq recorded 188 new highs and 58 new lows.

(Reporting by Chibuike Oguh in New York; Additional reporting by Bansari Mayur and Shristi Achar A in Bengaluru; Editing by Aurora Ellis and Matthew Lewis)

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