So what did the stock market do today? Talk about a reversal. With just minutes until the closing bell, the major indices began to trim their losses and move into the green. Stocks that were down 7% or even 10% inched their way back to break-even, and experts started to call for a reversal of the selloff. Here is everything you need to know to understand the news… and profit.
The stock market got a grim start this morning, with top movers Tesla (NASDAQ:TSLA), Nio (NYSE:NIO) and Churchill Capital IV (NYSE:CCIV) posting serious losses. Cryptocurrencies were all down. A rare winner, AMC Entertainment (NYSE:AMC), shot higher on news that movie theaters will reopen in New York.
With these stocks still in the spotlight, the story began to shift and brighten. Take a look at what happened in the stock market today with these top stories.
Market Movers: EV Stocks Take a Plunge?
Throughout the trading day, electric vehicle stocks were in a sore spot. Tesla was leading the way, with headlines swirling that CEO Elon Musk lost $15 billion in a single 24-hour period. This cost him the title of the richest man in the world, and came just a few days after Tesla invested $1.5 billion in Bitcoin (CCC:BTC). What represented a source of serious mainstream support for the cryptocurrency quickly turned south. Over the weekend, Musk tweeted concerns that the valuation on BTC and Ethereum (CCC:ETH) was too high. With a snap of his fingers, the crypto market took a plunge.
One EV stock was not so lucky. Churchill Capital IV, the blank-check company from Michael Klein, had a brutal day. After finally confirming its plans to bring Lucid Motors public, investors sold off shares hard. Plans for the public company to have a valuation of $24 billion created a sense of panic, especially after reports called for a valuation between $12 billion and $15 billion. Perhaps with market leaders calling for investors to buy the dip, CCIV stock will right its course soon.
Tech Selloff, Jerome Powell, Cryptocurrencies
Federal Reserve Chair Jerome Powell said that, no matter what level of recovery we have seen in the stock market since the start of the pandemic, there is need for much more growth. As part of this, he said the central bank will brush off concerns of near-term inflation. It will also keep its growth-focused policies in motion, such as near-zero interest rates and historic bond-buying programs.
His comments, while a worrying reminder of pandemic damages, seem to have done a magic trick. They helped to reverse a selloff in tech stocks, and also could create a floor for cryptos. Remember, one of the big catalysts behind Bitcoin thus far has been inflationary fears. Stimulus measures from Congress and the Federal Reserve have spooked many crypto bulls, leading them to pour into the assets. With the latest update from Powell and a $1.9 trillion stimulus bill on the table later this week, a rally in cryptos could soon resume.
Plus, the New York Attorney General reached a settlement with Bitfinex and Tether (CCC:USDT). Although the two companies will have to pay fees of $18.5 million and stop doing business with New Yorkers, they avoided admitting to any wrongdoing. With the cryptocurrency space narrowly avoiding a major knock to confidence levels, keep any eye on BTC. Prices could hit $58,000 again soon.
What Did the Stock Market Do Today? A Biotech Boost.
Although not all popular biotech stocks had a pretty day, there is reason for hope. SoftBank (OTCMKTS:SFTBY) shared plans to invest billions into biotech stocks to expand its reach into healthcare. As with other large-scale investors, there is reason to believe that SoftBank will spark a trend. With its endorsement of the biotech space, more dollars could follow suit.
What companies could that impact? Two popular, high-flying equities come to mind. Bionano Genomics (NASDAQ:BNGO), a genome analysis specialist, was down today. However, its recent publication should improve its diagnostic abilities and increase its relationship with patients. TransEnterix (NYSEMKT:TRXC), another popular company, announced a name change. This comes as it plans to expand its focus and become a real player in the robotic surgery market. Although TRXC stock also sold off today, it is worth keeping on your radar here.
The same goes for other biotech names. While we wait for more details from SoftBank, the sector seems to have good things in store.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.