Retail investors lurking on platforms such as WallStreetBets, a Reddit sub-forum, are again battling Wall Street professionals and the Fed, as the recent rebound in meme shares such as BBBY.US and AMC.US shows the frenzy of last year.

At one point, 3B Home nearly tripled in nine days of gains, while AMC's shares rose 65 per cent as speculative money surged in the stock market. The two companies pushed a basket of 37 meme stocks tracked by Bloomberg up 10% over the past week, while a basket of "most annoying" stocks tracked by Goldman Sachs rose about 17% over the same period.

The recovery in more speculative markets may have been driven in part by individual traders' willingness to engage in riskier trades and anti-gambling hedge funds. Technology and other growth stocks pushed the Nasdaq 100 up 20% from its June low on Monday, when some on wall street warned that the fed would fight inflation despite the pain of the stock market.

Mark Taylor, a Mirabaud Securities sales trader, said "smart people" were confused and hindered, were weak in terms of momentum and firepower, and struggled with short positions; "there was a lack of real understanding of why Meme investments suddenly revived".

Shares of 3B jumped 40 per cent on Monday to a record 120.5 million shares, making it the second-largest asset to be bought on Fidelity. AMC is one of the five most bought stocks on the platform, with trading volume tripling its normal level in the past month. The code and GME.US of the two companies are the most popular keywords on the WallStreetBets platform.

A basket of memem shares tracked by Bloomberg rose 3.7%, extending a six-day rally. The best performers in the group are Game Station and Express (EXPR.US). The newly realized Public Magic Empire Global Co., Ltd., a less popular company, Magic Empire Global (MEGL.US), has grown by 2825% in the two days since it went public, attracting the attention of some retail investors.

Ed Moya, senior market strategist at Oanda, said: "these emerging meme stock rallies will continue only if the US stock market is generally higher." After HKD.US warned WSB of possible soaring trends, many retail traders are scanning their favorite games and want to rejoin. "

Shang Cheng's rapid rise and subsequent decline not only confused the market, but also fascinated the market. At one point, the stock soared several times, which was eye-popping, and then erased most of its gains.

Stocks that have been heavily shorted, such as Wayfair (W.US) and Rent the Runway, and stocks listed through mergers of blank check companies, such as 23andMe, experienced double-digit gains as investors braced themselves for volatility.

Short covering by institutional investors may have contributed to the recent surge in the stock market, according to some on Wall Street. According to analyst firm S3 Partners, more than half of 3B home tradable stocks are currently shorted, compared with about 20 per cent for AMC, game stations and Wayfair.

The index, which tracks high confidence bets from hedge funds, rose 1.8 per cent last week, lagging 2.7 percentage points behind the index favored by retail investors and the highest since March, according to data compiled by Goldman Sachs. In early August, Goldman's basket of retail stocks is expected to be the best month since January 2021, relative to companies favored by hedge funds. The basket of retail stocks includes DAL.US, which has just posted its longest weekly gain since 2020.

Quincy Krosby, chief global strategist at LPL Financial, said: "retail traders have to move quickly because a new event could change the entire trajectory of the stock market. Retail investors are challenging the Fed and some professional investors, and they have done a good job so far. This is risky because it may soon go in the other direction. "