GameStop frenzy unlikely to topple entire stock market


CNBC’s Jim Cramer said Monday he believes the Reddit-sparked trading frenzy in GameStop and a few other stocks is unlikely to sink the broader U.S. equity market.

“I am trying to stay away from the notion that this is big enough to topple the market,” Cramer said on “Squawk on the Street.”

Rather, Cramer contended the short squeezes in GameStop, AMC Entertainment and others present more “regulatory risk, not systemic risk” to investors. He compared it with the flash crash of 2010, when in a matter of minutes the Dow Jones Industrial Average plummeted nearly 1,000 points, and the sharp pullback in August 2015 linked to a major sell-off in Asian markets.

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