Nov 29 Reuters GameStop shares looked set to extend their rally on Wednesday, after jumping 13 in premarket trading, suggesting a broader recovery in the market was spurring appetite for speculative bets among retail traders.

The videogame retailer39;s shares were last trading at 15.30 and were among the most actively traded on the New York Stock Exchange at 854 a.m. ET.

Individual investors purchased 1.92 million worth of GameStop shares on a net basis on Tuesday, their highest since Aug. 6, data from Vanda Research showed.

The optimism in the market is attracting retail traders, indicating the market rally is overstretched, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

AMC Entertainment, another favorite among retail traders, rose nearly 3.6 to 6.94 on Wednesday.

The recovery in meme stocks comes as the SP 500 closes in on its highest level for 2023 on hopes U.S. interest rates have peaked, breathing some life into speculative trading that has struggled this year.

Both, GameStop and AMC were among the most discussed by traders on social media site stocktiwts.com on Wednesday.

The sudden interest in GameStop comes ahead of its thirdquarter results on Dec. 6. Analysts expect its net loss to narrow to 25.6 million from 93.4 million a year earlier.

Some short sellers may be concerned both by this price move but also that GameStop will release betterthanexpected earnings next week, said Peter Hillerberg, cofounder of Ortex.

About 21.6 of GameStop39;s…