Dow drops 600 points | GameStop gains 400% on the week | How will the mania end?

GameStop shares closed 68% higher on Friday, bringing their gain for the week to 400%

VIEW IN BROWSER | SUBSCRIBE FRI, JAN 29, 2021 EVENING BRIEF AS OF FRI, JAN 29, 2021 • 05:15 ET DJIA 29982.62 -2.03% -620.74 S&P 500 3714.24 -1.93% -73.14 NASDAQ 13070.70 -2.00% -266.46   Most Active DOW NAME LAST CHG %CHG AAPL 131.96 -5.13 -3.74% MSFT 231.96 -6.97 -2.92% INTC 55.51 -0.56 -0.99% S&P 500 NAME LAST CHG %CHG AAPL 131.96 -5.13 -3.74% AAL 17.17 -0.93 -5.14% GE 10.68 -0.41 -3.70% NASDAQ NAME LAST CHG %CHG AAPL 131.96 -5.13 -3.74% AMD 85.64 -1.88 -2.15% MSFT 231.96 -6.97 -2.92%   EDITOR'S NOTE The wild trading in heavily shorted stocks continued on Friday as GameStop rebounded from its Thursday losses to finish up 68% for the day and 400% for the week. The stock's bounce on Friday came after Robinhood announced that it would ease restrictions on trading that it had implemented on Thursday, but Robinhood tightened those restrictions on GameStop and dozens of other stocks throughout the session.   In an amazing sight, the broader stock market seemed at times to be moving in the opposite direction of the once forgotten video game retailer, with the major indexes dipping lower when GameStop made intraday surges. GameStop going higher is seen as bad for the market as its rally is hitting hedge funds who bet against the stock with losses and raising concerns about a market mania that could grow in its danger to the system the more those shares and other stocks trumpeted by the retail trading crowd surge.  Stocks had their worst week since October.   Still, many on Wall Street believe the market dislocation does not yet pose a large threat to the market.   "While we expect some more deleveraging, ultimately the scale of the problem appears quite limited. The total dollar value of short interest is ~$800Bn but that for stocks with a short interest to float ratio greater than 20% is only $40Bn," Barclays strategist Maneesh Deshpande said in a note.   Catch The News with Shepard Smith at 7 p.m. ET on CNBC. The nightly newscast provides deep, non-partisan coverage and perspective on the day's most important stories. Jesse Pound | CNBC Markets Reporter @jesserpound TOP NEWS  Dow drops more than 600 points Friday, suffers worst week since October amid GameStop trading frenzy GameStop shares jump 68% on Friday, bringing gains for the week to 400% Robinhood is still severely limiting trading, GameStop holders can only buy one additional share Stocks on the Robinhood restricted trading list like AMC and Koss surged on Friday 'You've already won' — Cramer tells investors to take home run and sell GameStop SEC reviewing volatility amid GameStop frenzy, vows to protect retail investors This is how Wall Street thinks the Reddit-fueled GameStop trade unravels J&J says its Covid vaccine is 66% effective, but the single shot may fall short against variants Reddit frenzy pumps up Dogecoin, a cryptocurrency started as a joke United Airlines warns thousands of employees that their jobs are again at risk, labor unions seek more government aid   TOP VIDEO Let's not call this investing, it's gambling, says fmr. Goldman CFO of GME short squeeze   CNBC PRO The most optimistic scenario for GameStop can't come close to justifying the stock price, Baird says   SPECIAL REPORTS GameStop, cryptocurrency and bubbles: Market lessons from my son — and dad Don't bank on that refund yet. April tax season may come as a big surprise   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS