Stock Froth Boiled After $600 Checks. Now $1,400 May Be Coming
- More than 150 million Americans would likely receive payment
- Day trader cash injection may add fuel to equity market mania
Photographer: Bryan R, Smith/AFP/Getty Images
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Here’s what happened in the market around the time the government sent people $600 earlier this month. Penny share volume mushroomed. A company that sounds like a word Elon Musk tweeted rose 1,100%. Tesla added $130 billion, IPOs doubled and options trading exploded.
Coincidence? Maybe -- though a lot of people doubt it. They can’t help notice how tiny traders with money to spend keep turning up in the vicinity of almost every market spectacle these days. Now, more federal aid may be on the way, and Wall Street pros are bracing for what comes next.