Investors looking into why the market is falling on Thursday need look no further than our stock update below.
There are actually a few reasons behind the general dip in the market today. To start off with, the stock market has been seeing slight decreases throughout the week as investors are wary about a recovering economy.
The idea that investors wouldn’t be happy about the economy recovering may seem strange but it does make sense. Several e-commerce companies saw shares take a sharp dive yesterday as investors fear a reopening of physical businesses. That negative movement is continuing today for many of those stocks, including Etsy (NASDAQ:ETSY), Shopify (NYSE:SHOP) and Fiverr International (NYSE:FVRR).
The oncoming end of the novel coronavirus pandemic isn’t just worrying e-commerce investors. It’s also causing concern among investors afraid of rising inflation rates. As the economy returns to normal those rates could rise higher.
Adding to that, there’s the upcoming $1.9 trillion stimulus package that Congress is set to debate over. It seeks to send out checks of $1.400 to qualifying citizens. There are concerns that the amount is too high and will further add to inflation. However, the $15 minimum wage part of the bill was already killed off.
Finally, with an increase in inflation comes rising bond yields. We already saw this last month when bond yields got a boost on coronavirus vaccine news. At that time, the market experienced a similar retreat when investors got spooked about the rising rates.
And there’s the Thursday market update for why stocks are down today. The S&P 500 and Dow are currently up slightly as of this writing but experienced a sharp falling in the early morning hours.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
