What a busy day in the stock market today. Ark Invest saw its Space Exploration ETF (BATS:ARKX) dip on its first trading day, and GameStop (NYSE:GME) gained on more turnaround progress. Investors have a lot to watch later this week, especially with big infrastructure news coming. So what all did the stock market do today? Dive in with InvestorPlace below.
To start, take a look at the red in the major indices. The S&P 500 shed 0.32%, while the Dow Jones Industrial Average dipped 0.31%. The Nasdaq Composite also fell, losing 0.11% in Tuesday trading.
So what else did the stock market do today? Here are the top three stories.
What Did the Stock Market Do Today? Fret About Spending.
It feels a little bit like Groundhog Day today.
Tomorrow, President Joe Biden will travel to Pittsburgh to reveal his plan to massively revamp infrastructure and manufacturing in the United States. Economists are largely bullish on this plan, which is estimated to come in at $3 trillion. It will help create jobs, fuel economic activity and be a big push to get the U.S. past Covid-19 damages. Now, everyone is just waiting to see how Biden will fund it.
Like a repeat of the stock market movement around the $1.9 trillion American Rescue Plan, the major indices dropped today. The Dow Jones Industrial Average shed roughly 100 points, marking the end of a three-day winning streak. The yield on the 10-year U.S. Treasury note is above 1.7%, and at one point today clocked in at a 14-month high.
As InvestorPlace contributor Chris MacDonald highlighted, we are seeing the same ripple effects as with the Covid-19 relief package. Investors are worried about inflation, and risk-off sentiment hit tech stocks. Keep an eye out for how Biden plans to fund the infrastructure spending. And like we saw with the American Rescue Plan, once that cash infusion hits the market, investors could chase everything higher.
Is an IPO Coming in the NFT Stocks World?
Investors are still hungry for so-called non-fungible token (NFT) stocks, but now they want legitimacy. Companies like Color Star (NASDAQ:CSCW) are gaining after announcing clear NFT plans, while others are falling out of favor. Hall of Fame Resort & Entertainment (NASDAQ:HOFV) sold off nearly 20% today after its fantasy football news failed to please investors.
Don’t get me wrong: NFT stocks are still wildly speculative. However, as the crypto assets continue to dominate the news, investors want the biggest and best opportunities in the space.
One legitimate NFT leader may be about to come public. Dapper Labs, the company behind NBA Top Shot and Crypto Kitties, just raised $305 million its latest funding round. This brings its valuation up to $2.6 billion and has generated quite a buzz on Wall Street. Although Dapper Labs has not confirmed its intent to come public, many think it is likely as the company and its NFT platforms continue to grow. Plus, a Dapper Labs IPO would give it some cash to help grow its offerings.
What does this mean for investors? Right now, without any concrete plans for a Dapper Labs initial public offering, there is a bit of a waiting game at play. However, it serves as affirmation that the NFT stocks frenzy is only growing. Speculative and little-known names like Takung Art (NYSEMKT:TKAT) could soon be giving way to companies with high-profile celebrity and venture capital backers.
All About the Creator Economy
The creator economy has been booming, and now company valuations back it up.
Today, Axios reported that Substack is raising $65 million its latest funding round, fueled on by growing interest in the newsletter business. The platform, largely driven by professional journalists, markets the idea that you can be your own boss. You can write your own newsletter, publish it for paid subscribers and keep most of the revenue. After this latest round, Substack could see its valuation hit $650 million. Patreon, another platform of the economy, comes in at $1.2 billion. And as of today, Cameo is yet another creator economy unicorn, raising $100 million at a $1 billion valuation.
According to many experts, Covid-19 did nothing but fuel this economy. People were looking for new creative outlets, and new ways to make money. Through these platforms consumers can subscribe to targeted newsletters, pay their favorite streamers or get personal birthday messages from a curious rang of celebrities. But what should investors be watching?
Perhaps Kia Kokalitcheva and Dan Primack are onto something. Writing about Substack for Axios, they warn that the popular platform could face big competition from Big Tech. Marinate on this story, and keep an eye on your favorite influencers.
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.