Stocks plummeted as a speculative frenzy over GameStop and a handful of other stocks ramps up concerns over how much damage an Internet revolt against Wall Street bigwigs can perform to the wider market

Another bout of selling gripped the U.S. stock market Friday, as anxiety mounts over whether the frenzy supporting a swift, meteoric increase in GameStop plus a handful of other stocks will damage Wall Street overall.

The S&P 500 dropped 1.9%, providing the benchmark indicator its biggest weekly loss since October.

GameStop shot up nearly 70%, clawing back much of its steep loss from the day before, after Robinhood said it will allow customers to begin purchasing a few of their inventory . GameStop has been around a stupefying 1,600% run over the last 3 months and has been the battleground where swarms of smaller investors see themselves making an epic stand contrary to the 1 percent.

The attack is directed squarely at hedge funds and other Wall Street titans that’d bet the struggling video game retailer’s stock would collapse. Those firms are taking sharp losses, and other investors state that is pushing them to sell different stocks they own to increase money. That, in turn, assists pull down parts of the market entirely irrelevant to the revolt penalized from the cadre of novice and smaller investors.

The maniacal moves for GameStop and a few other formerly beaten-down stocks has drowned out a number of the other problems weighing on markets, including the virus, vaccine rollouts and possible support for the economy.

“Our consideration is whether that is something that is a long-term impact or comprised within a couple of companies,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

Meanwhile, calls for authorities to step in are becoming louder on Capitol Hill, along with the Securities and Exchange Commission says it is carefully monitoring the situation.

“You’ve seen a great deal of volatility this week, so when you have some unknowns like what you’re seeing from the retail trading world, people are somewhat worried at record highs here and taking some cash off the table,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

The S&P 500 dropped 73.14 points into 3,714.24. It finished the week with a 3.2percent reduction, its worst week at three months. It ended January using a 1.1% reduction, its first monthly decline since October. The S&P 500 remains up 13.6% since the end of October.

A few of the heaviest weights over the indicator have been Apple, Microsoft and other Big Tech stocks which have been big winners for both professional and other investors throughout the last year.

The Russell 2000 index of smaller businesses handed up 32.97 points, or 1.6%, to 2,073.64.

Johnson & Johnson dropped 3.6% after it said its vaccine seems to protect against COVID-19, although not as ardently as rivals. Critics said the results, that would require just 1 shot rather than the two required by other vaccine manufacturers, were below expectations.

Elsewhere, investors saw virus disease spikes in Europe and Asia, revived travel curbs and discussions from Washington over President Joe Biden’s projected $1.9 trillion economic aid package. Hopes for such stimulus for the economy have carried the S&P 500 and other significant indexes back to record highs lately, along with excitement about COVID-19 vaccines as well as the Federal Reserve’s pledge to maintain the accelerator floored on its help for the economy. Low rates of interest from the Fed can behave like steroids such as stocks and other investments.

“We are still moving towards a comeback from the pandemic, just a heck of a lot bumpier than anybody had anticipated,” stated Stephen Innes of Axi at a report.

Wall Street’s focus remains squarely on GameStop and other moonshot stocks. AMC Entertainment jumped 53.7%, and headset firm Koss vaulted 52.5%. Following their success with GameStop, traders have been on the lookout for additional downtrodden stocks in the market where hedge funds and other Wall Street firms are betting on price drops.

By rallying together into those stocks, they’re triggering something called a”squeeze.”

The smaller shareholders, meanwhile, have been crowing about their empowerment as well as saying the financial elite are just getting their comeuppance after decades of pulling away from the rest of America.

“We’ve experienced their boot on our insecurities for so (expletive) long that the sudden rush of blood into our brains once we have just a (asterisk)opportunity (asterisk) of getting free has made me feel… well, it has made me feel,” one person wrote on a Reddit conversation about GameStop inventory.

“I’ve been scattered during this entire outbreak and reside in a country far from home or any feeling of neighborhood,”a different user responded. “I’d sort of just… given up. These last few weeks I’ve started caring ; feeling stressed again; needing again.”

The majority of Wall Street and other market watchers say that they expect the smaller-pocketed investors who are pushing GameStop to finally get burnt. The fighting retailer is predicted to still eliminate money in its next financial year, and many analysts say its stock should be closer to $15 than $330.

In response, many consumers on Reddit have stated they’re able to maintain the pressure more than hedge funds might stay solvent, even though they often use more colorful language to state that.

After easing up on some of the restrictions ancient Friday, Robinhood tightened them throughout the day, limiting the number of GameStop stocks that customers could purchase. By 3:03 p.m. Eastern time, they could not buy any longer if they had a minumum of one share.

The SEC said Friday it is assessing”the extreme price volatility of certain stocks’ trading costs,” warning that such volatility could expose investors to”severe and rapid losses and undermine market confidence”

Jacob Frenkel, a former SEC enforcement attorney and federal prosecutor, suggested it might have made sense for the industry watchdog agency to suspend trading for up to ten days in GameStop inventory, under its lawful jurisdiction.

Only tracking the situation, without SEC actions,”is like placing security experts in a permanent front-row chair before a runaway roller coaster,” Frenkel said.

An enforcement investigation by the bureau would need to ascertain if there were violations of the securities legislation, stated Frenkel, who heads the government investigations practice at law firm Dickinson Wright.

The Senate Banking Committee and the House Financial Services Committee plan to hold hearings on the GameStop controversy.

“The capital markets need to be less of a casino and more of a place where individuals… can invest in companies that are leading the new economy,” said Rep. Brad Sherman, D-Calif., who heads the Financial Services subcommittee on buyer protection.