GameStop (GME) stock was up as much as 18%, reaching $116 a share on Wednesday, but gave back much of those gains amid wider market volatility. Shares of the video game retailer closed up 3.49%, at $103.26.
It's been one year since GameStop made headlines as retail traders piled onto the heavily shorted stock, sending share prices skyrocketing. In fact, one year ago today, the stock opened at $88.56 and closed at $147.98.
AMC (AMC) which often trades in tandem with GameStop also climbed up as much as 7% before closing the session down only .44%.
Meme stocks have been selling off heavily recently amid market volatility and the prospects of rate hikes to combat inflation. Both GameStop and AMC are down more than 35% year-to-date.
On Wednesday the Federal Reserve announced it would maintain its policy of keeping interest rates near zero, but signaled a rate hike is coming. Fed Chair Jerome Powell's comments prompted a market reversal with the major averages giving up their gains from earlier in the session. The Nasdaq was the only major average to end the session barely in the green.
Retail stock trading has slowed down since the surge seen in the first quarter of last year. However, trading activity among retail investors remains higher than pre-pandemic levels, and is expected to continue in 2022, according to a research report by S&P Global Market Intelligence.
Despite more retail investors take part in the markets than prior to the pandemic, an event like the GameStop phenomenon may not happen again any time soon.
“Overall, trading in meme-stocks remains high, but the potential for a seismic market event like the one in January 2021 seems less likely,” reads the report.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre