WASHINGTON – The Nasdaq closed lower on Wednesday with a sell-off in technology stocks.
The tech-heavy index lost 265 points to end the day at 12,961, with GameStop plummeting 33% and AMC Entertainment sliding 15%.
The two companies were popular in January when a group of small investors coordinated on social media platform Reddit under the WallStreetBets forum to buy and hold shares, driving stock prices higher.
Zoom Video was down 7% at the final bell, while Airbnb, Tesla and Blackberry all shed more than 4%.
The Dow was flat at 32,420 and the S&P 500 was down 20 to 3,889 with Tesla losing 4.8%.
The Securities and Exchange Commission (SEC) announced it started to implement the Holding Foreign Companies Accountable Act, which includes removing Chinese companies from US stock exchanges.