Treasury Secretary Janet Yellen will hold a meeting with top federal regulators as early as this week to address recent market volatility caused 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 would try to discuss “whether recent activities are compatible with protecting investors and fair and efficient markets,” adding that the meeting could be held as early as Thursday.
Last week, the SEC said it was monitoring business activity and was willing to take aggressive enforcement action.
Shares closed sharply higher on Tuesday, while GameStop GME shares,
and AMC Entertainment AMC,
– two of the most traded stocks collapsed last week. These two very short stocks, along with others, including the SI00 futures on silver,
in recent days we have seen wild operations that have been encouraged by online chat, especially on Reddit.
Coming off the worst week of losses since October, Tuesday’s market gains reassured some Wall Street experts.
“There were fears that GameStop’s business frenzy would spread to the wider market. That doesn’t seem to have been the case,” Michael Reynolds, an investment strategy officer at Glenmede Trust, told MarketWatch. “It is a return to the same engines of the market. Fiscal stimulus and vaccine progress continue to be tailwinds. ”