What did the stock market do today? 3 great stories to catch up on.
Today has been a huge day for the major indices, with the Dow Jones hitting an all-time high and the Nasdaq avoiding its fifth consecutive day of losses. Crypto continued to soar, and Gary Gensler answered hard-hitting questions from Congress. So what did the stock market do today?
- the S&P 500 closed up 0.82%
- the Dow Jones Industrial Average closed up 0.93%
- the Nasdaq Composite closed up 0.37%
What else has the stock market done today? Here are the main stories.
What did the stock market do today? He was impressed with the Dow.
The Dow Jones today had the most exceptional day of all the major economic indices. The industry average jumped 318 points at the close, ending the day high of $ 34,548.53.
The all-time high suggests that we are at a time when post-pandemic enthusiasm is starting to mount. The bulls look to cyclical stocks for proof and they find it around the corner. General Mills (NYSE:GIS), Kroger (NYSE:KR), Boeing (NYSE:BA) and JPMorgan Chase (NYSE:JPM) are all on the rise today as consumer enthusiasm appears to be reaching pre-pandemic levels.
Completing the bullish Dow as well is an impressive race for the retail and tech giants. Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) all wrapped up for the day in green.
As the country sees continued improvement in unemployment rates, investors may find reason to be bullish on cyclical stocks. According to Investing.com, “The number of people filing for unemployment fell from 92,000 to 498,000 in the week ending May 1.” This is the lowest level of jobless claims since March 2020. Analysts also estimate that 978,000 jobs were created last month. It would be intuitive to assume that these jobs created are in cyclical sectors.
Crypto stays hot while Exchange plays plaice
Investor interest in cryptocurrency is still at unprecedented levels after April’s altcoin craze. Dogecoin (CCC:DOGE-USD) stands near 60 cents today after doubling in value this week. Now it looks like the season is on for hard fork coins as the trading volume has skyrocketed. Ethereum (CCC:ETH-USD) fork Classic Ethereum (CCC:ETC-USD) is up around 60% on the day with nearly double the average trading volume. And, Bitcoin (CCC:BTC-USD) forks Bitcoin Gold (CCC:BTG-USD) and Bitcoin Cash (CCC:BCH-USD) follow in ETC’s footsteps. It is clear that investors are striving to find the next Dogecoin in these hard forked digital currencies and they are on the right track.
The crypto hype continues to spread across Wall Street as well. Goldman Sachs (NYSE:GS) is capitalizing on the crypto craze with an announcement that it is now offering Bitcoin derivatives. The contracts were quietly launched in April and follow Goldman Sachs’ reopening of its crypto trading desk in early 2021.
However, not all the hype can save Coinbase (NASDAQ:PIECE OF MONEY) from his post-IPO hangover. The largest U.S. crypto exchange hit an all-time low of $ 250.51 today, less than a dollar above its benchmark price. The free fall caused investors to readjust their perspective on the stock and question its valuation.
While COIN is immune to the same trendy non-fungible token (NFT) and Special Purpose Acquisition Company (SPAC) review given its infrastructure, there are still plenty of questions left. We don’t yet know what will happen to government cryptocurrency regulation. Additionally, it appears that many are disappointed with the idea of owning a stock that could be left out of a government crypto restructuring.
Gary Gensler chats with house reps on GameStop and Archegos
Gary Gensler, new chairman of the United States Securities and Exchange Commission (SEC), took the hot seat this afternoon as Congress continues to seek information GameStop (NYSE:GME). Gensler was tasked with addressing the consequences of the short-term GME squeeze in January, which greatly rewarded retail investors for their coordinated attack on short sellers.
Gensler prepared for the testimony with a host of new rules being considered by the SEC for trading. The rules are primarily aimed at short sellers, for example by requiring greater disclosure of short positions. Also noteworthy are the rules aimed at increasing the transparency of securities lending as well as the disclosure rules for equity swaps. The last of these was cited by Gensler following the implosion of Archegos in March.
Continuing the dialogue on the “gamification” of retail applications was also on Gensler’s agenda. The new SEC chairman noted that a public opinion request was being drafted asking for comment on how these apps attract retail investors with points and rewards. On top of that, Gensler announced an additional project offering a two-day transaction settlements expedition.
Today’s testimony seems to appeal to Democrats, as Gensler shows promise in cracking down on Wall Street’s opaque business tactics. The new rules and the two draft proposals should protect retail investors well from app gamification and make short sales much easier to spot.
As of the publication date, Brenden Rearick does not hold (directly or indirectly) any position in the securities mentioned in this article.