US stock market: GameStop, AMC Entertainment shares tumble after two-day rally

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ALSO READ: Wall Street today: US stocks surge after inflation data Videogame retailer GameStop shed nearly 30 per cent, nearly half of its gains in the past two sessions, while cinema chain AMC fell 25 per cent after surging 135 per cent in the same period. In an exchange filing, AMC said it will issue nearly 23.3 million shares of its stock to exchange for $163.9 million in debt that it owes. Trading in the retail investor darlings were halted multiple times after the market opened, with investors exchanging more than $2.3 billion worth of GameStop shares.

On Tuesday, ‘Roaring Kitty’ shared a clip from the movie ‘Braveheart’ on X (formerly twitter) with the word ‘GameStop’ flashing on the screen, as Mel Gibson, playing William Wallace, screams “freedom". It is the first time that Gill named a company after his return to X following a three-year gap. ALSO READ: Explainer: Why are meme stocks on Wall Street rallying again? In 2021, Gill’s YouTube streams and a string of posts on Reddit had helped attract a flood of retail cash into GameStop.

In Gill's 2021 testimony to Congress, he denied the notion that he used social media to profit by promoting GameStop to unwitting investors. On Tuesday, AMC and GameStop were among the top 10 securities bought by retail investors. US stock indices gained on Wednesday after a lower-than-expected increase in consumer prices.