Market rebounds | GameStop loses 40% | Robinhood to allow buying again

Investors were licking their chops ahead of a potentially big Covid stimulus announcement from President-elect Joe Biden on Thursday.

VIEW IN BROWSER | SUBSCRIBE THU, JAN 28, 2021 EVENING BRIEF AS OF THU, JAN 28, 2021 • 05:15 ET DJIA 30603.36 +0.99% +300.19 S&P 500 3787.38 +0.98% +36.61 NASDAQ 13337.16 +0.50% +66.56   Most Active DOW NAME LAST CHG %CHG AAPL 137.09 -4.97 -3.50% INTC 56.06 +2.48 +4.62% MSFT 238.93 +6.03 +2.59% S&P 500 NAME LAST CHG %CHG AAL 18.10 +1.54 +9.30% AAPL 137.09 -4.97 -3.50% GE 11.09 -0.29 -2.55% NASDAQ NAME LAST CHG %CHG AAPL 137.09 -4.97 -3.50% SIRI 6.40 -0.47 -6.84% INTC 56.06 +2.48 +4.62%   EDITOR'S NOTE The major averages rose on Thursday, as some investors sighed after a reversal in some of the speculative trading in the market recently. The Dow Jones Industrial Average rose 300 points after its worst sell-off in three months on Wednesday.   Wild trading in names like GameStop was repeatedly halted by the exchanges on Thursday, after free stock trading pioneer Robinhood, among other brokers, stopped allowing clients to buy shares and options of some of the heavily-shorted names. Shares of GameStop, which were soaring in premarket trading before Robinhood's announcement, closed down by 40%. Shares of AMC Entertainment and Bed Bath & Beyond also lost value without the army of rookie investors inflating share prices in an effort to stick it to hedge funds betting against the stocks.   Robinhood's decision was met with backlash from customers to politicians to other investors. The Reddit crew took to Twitter to express their outrage.   This is an unfolding story. After the closing bell, Robinhood decided to allow limited buying of these restricted securities. You can read the latest here.   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. Maggie Fitzgerald | CNBC Markets Reporter @mkmfitzgerald TOP NEWS  Dow jumps 300 points as market stages a strong comeback from biggest sell-off in 3 months Robinhood restricts trading in GameStop, other names involved in frenzy GameStop's stock closes down more than 40% after brokers place restrictions on trades Lawmakers from AOC to Ted Cruz are bashing Robinhood over its GameStop trading freeze Made a killing in GameStop? Now comes the tax bomb Robinhood will allow limited buying of restricted securities Friday, GameStop jumps after hours Art Cashin suspects outside forces are playing a role in the GameStop trading tumult Robinhood customer sues trading app over GameStop restrictions Pelosi says House will take first step toward passing Covid relief next week, with or without GOP Apple CEO links Facebook's business model to real-world violence   TOP VIDEO DC political consultants warn of 'financial populism' behind Reddit-driven market volatility   CNBC PRO Here's a fresh list of the biggest Wall Street shorts. Most are getting hit on Thursday   SPECIAL REPORTS Mark Cuban says his 11-year-old son 'made trades' in AMC, BlackBerry with Reddit's WallStreetBets: 'He hasn't made money yet' General Motors plans to exclusively offer electric vehicles by 2035   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