What did the stock market do today? 3 great stories to catch up on.
What a day. Electric vehicle stocks were on the move, cryptos cooled, and a bunch of federal policies saw stocks on the move. So what did the stock market do today? Dive with Investor place below.
For starters, the major clues ended the day in a mixed bag. The S&P 500 gained 0.15%, while the Dow Jones Industrial Average gained 0.05%. Heavy technology Nasdaq Composite, however, was less fortunate. It lost 0.07% in Wednesday’s trading.
So what else has the stock market done today? Here are the first three stories.
What did the stock market do today? Follow the Fed.
All eyes were on the Federal Reserve again on Wednesday. Its Federal Open Market Committee (FOMC) released the minutes of a March meeting, and investors were eager to receive updates. What is the Federal Reserve thinking? And what does this mean for the stock market?
Perhaps the most important thing to remember is that the Fed is really committed to its current ultra-simple monetary policy. In order for this position to change, he seeks to make more progress towards their maximum employment goal. Although FOMC members have commented on the economic recovery since the start of the Covid-19 pandemic, many members believe the United States is still a long way from this employment target.
So what does this mean for investors? On the one hand, the continuation of the accommodative policy could trigger persistent fears of inflation. On the other hand, Wall Street is already looking to a collection of positive economic indicators that support bullish sentiment. In the long run, this latter prospect appears to be the most profitable.
Last week, the March jobs report came in better than expected. Activity in the service sector is rebounding, as is manufacturing activity. The The International Monetary Fund has also updated its outlook, now calling for global growth of 6% this year. And as we reported this morning, JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon calls for a economic boom to carry the market until at least 2023.
As we watch a stock market near record highs and call for continued economic growth, it makes sense for investors to focus on growth stocks. Here’s what you need to know before investing.
Stocks move as Biden steps into action
President Joe Biden has rolled up his sleeves and is ready to get to work. In response, various corners of the stock market are seeing movement.
The first thing on his agenda is infrastructure. Today, he provided updates on his roughly $ 2.3 trillion U.S. jobs plan, which calls for investments in traditional and environmentally friendly infrastructure. He shared that he would be prepared to negotiate with Republicans on his proposal and on taxes. His current plan calls for increasing the corporate tax rate from 21% to 28%, but on Wednesday he said he would willing to negotiate a tax rate around 25%. Biden also shared that he was open to other fundraising proposals. For investors, its commitment to such infrastructure spending should support infrastructure stocks. Investor place has already identified 21 to watch here.
Elsewhere, Biden has sparked some volatility in gun inventories. That’s because he is expected to address his planned executive actions tomorrow after consecutive mass shootings. As of now, the White House has not worked out its plans, although they mainly relate to tackling gun violence. Speculation hints at mandatory background checks on phantom weapon purchases, as well as further regulation of assault-type weapons. As investors wait for his plans, gun stocks ended mixed on Wednesday.
Finally, an executive action in January is finally playing out on Wall Street. Early in his tenure, Biden issued a ordinance prohibiting the Ministry of Justice from renewing contracts with private prisons. Today, investors see exactly what that means. As Investor place Web editor Vivian Medithi wrote, the largest private prison companies seek to raise funds. GEO Group (NYSE:GEO) suspended its dividend and is rethinking its REIT structure. Core (NYSE:CXW) turns to debt financing. The bottom line? Medithi is warning investors that GEO and CoreCivic are already working on rebranding efforts.
OK, baby boomers: teens flex their stock muscles
Piper Sandler’s annual Taking Stock With Teens survey is here, and for investors, there are two takeaways.
The first is that teen investors are also bullish on cryptocurrencies. For the very first time, Piper Sandler has included a crypto question. In response, the firm learned that 9% of the 7,000 respondents had already traded crypto. While this result surprised analysts, it makes a lot of sense. Over the past few months, cryptos have been boosted by growing interest from the general public. This interest comes from teenagers, as do large retailers and financial institutions.
The second takeaway is an overview of what drives teens to spend money. The main actions monitored by the investigation include Under protection (NYSE:TO, NYSE:UAA), Lululemon (NASDAQ:LULU) and Crocs (NYSE:CROX). A surge in interest in athletics and recreation, along with broad support from Gen Z consumers, prompted senior analyst Erinn Murphy to declare these top stocks to watch.
As of the publication date, Sarah Smith does not have (directly or indirectly) any position in any of the stocks mentioned in this article.
Sarah Smith is a Web Content Producer at InvestorPlace.com.