Treasury Secretary Janet Yellen will hold a meeting with key federal regulators later this week to address the recent market volatility driven by so-called “meme stocks”, Reuters reported Tuesday night.
Yellen will meet with the heads of the Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission, according to Reuters.
A Treasury spokesman told Reuters that Yellen will seek to discuss “whether recent activities are consistent with investor protection and fair and efficient markets”, adding that the meeting could take place as early as Thursday.
Last week, the SEC said it was monitoring commercial activity and was prepared to take aggressive enforcement action.
Shares closed sharply higher on Tuesday, while GameStop GME shares,
and AMC Entertainment AMC,
– two of the most traded shares last week – plummeted. These two heavily shorted shares, along with others, including SI00 silver futures,
have seen wild negotiations in the past few days that have been encouraged by online conversations, especially on Reddit.
Coming out of the worst week of losses since October, Tuesday’s market gains reassured some Wall Street experts.
“There were fears that the GameStop trading frenzy could spread to the broader market. it doesn’t seem to have been the case, ”Michael Reynolds, director of investment strategy at Glenmede Trust, told MarketWatch in an interview. “It is a return to the same drivers on the market. The fiscal stimulus and the progress of the vaccine continue to be favorable ”.