Business

Stimulus checks headed for stock market


A recent Deutsche Bank survey found that 37% of Main Street investors, some of who could be members of the Reddit community, will plow a “large chunk” of stimulus money, about $170 billion, “directly into equities.”


These small but mighty investors have gained notoriety in recent months, creating volatility and heavy volume in a number of heavily shorted stocks, such as GameStop Corp., AMC Entertainment Holdings Inc. and Bed Bath & Beyond Inc.


TickerSecurityLastChangeChange % KOSS KOSS31.44+13.54+75.64% RKT ROCKET COMPANIES INC.25.82+0.34+1.33%The interest in these names is being fueled in part by social media platforms, such as Reddit’s WallStreetBets, where ideas are exchanged, debated and likely followed by actionable trades.


TickerSecurityLastChangeChange % SCHW CHARLES SCHWAB64.63+0.91+1.43% MS MORGAN STANLEY82.82+1.99+2.46% IBKR INTERACTIVE BROKERS GROUP78.28-0.60-0.77%The S&P 500, up 73% since the March 23, 2020, pandemic-produced low, has in part been supported by the growing army of retail traders.


“We view surging exposure by new retail investors in the US as having been a key driver of the speed, duration and composition of the equity market rally since the March bottom,” the Deutsche Bank team said.


Chris Robinson of TJM Institutional Services tells FOX Business that cash, combined with this latest round of stimulus and perhaps more relief packages down the road, could keep stocks humming along.






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