What a busy day in the stock market. We saw bidding on a new non-fungible token from Elon Musk spike, a handful of big moves in blank-check companies and a few potential short squeeze targets emerge. So what all did the stock market do today? And what else do you need to know? Dive in with InvestorPlace.
It was a bit of a rough day on Wall Street. The S&P 500 closed down 0.16%, while the Dow Jones Industrial Average closed down 0.39%. The tech-heavy Nasdaq Composite closed up, by 0.09%.
So what else did the stock market do today? Take a look at these three top stories.
What Did the Stock Market Do Today? Wait for the Fed.
Are you feeling a bit apprehensive? It appears that Wall Street is ahead of the Federal Reserve briefing tomorrow afternoon.
Federal Reserve Chair Jerome Powell will take the stage Wednesday following a two-day meeting. When he does, many investors will be watching to see what insight he gives on future directions for the bank. With analysts calling for an economic boom thanks to the Covid-19 vaccine rollout and American Rescue Plan, some feel it is time for a change at the Fed.
However, analysts are betting on things mostly staying the same. One potential change comes from the fed funds target rate. More conservative guesses say that officials will share a willingness to change it from near-zero levels in 2023. Some even think it could change as soon as next year.
So what should investors be watching for? According to Rick Rieder of BlackRock, major market movers. Rieder thinks anything Wall Street learns from the Fed tomorrow could be enough to spark a so-called March Madness in the equity markets. Keep a close eye on the news and keep your seatbelt on.
SPAC Attack Heats Up With Merger News
Yesterday we reported that special purpose acquisition companies may be the latest targets of short sellers. However, that is not stopping SPAC stocks from enjoying some time in the spotlight.
Today, Churchill Capital IV (NYSE:CCIV), an investor favorite, popped. Driving the move is news that Peter Rawlinson, the CEO of Lucid Motors, will be joining Jim Cramer on Mad Money tonight. Investors are hopeful for more information about the Lucid Motors SPAC merger, and details on the Air production timeline.
Perhaps the bigger news came from lesser-known Fintech Acquisition V (NASDAQ:FTCV). The blank-check company from Betsy Cohen announced it would acquire eToro. Not only is this exciting for crypto fans who can access tokens through eToro, it also offers a blow to Robinhood. eToro will start providing stock trading service at some point in 2021, making it a truer rival. Following the GameStop (NYSE:GME) frenzy, many investors may be feeling lukewarm on Robinhood. A sizeable public alternative with SPAC backing could help it stand out.
Most importantly, FTCV stock and CCIV stock demonstrate the continued interest in the space. Plus, with talk of a deal for the ride-hailing startup Grab swirling, we could see more massive deals in 2021.
Coinbase Just Gave Cardano a Boost
The last few months have thrust Bitcoin (CCC:BTC) and other cryptocurrencies into the spotlight.
Could environmental activists derail this success? Although longtime crypto bulls are not likely to back away from Bitcoin over energy consumption concerns, many new investors may be dissuaded. Just recently, we saw ArtStation back away from non-fungible token offerings for environmental reasons.
The heart of the story is that mining cryptocurrencies, or creating NFTs, uses a lot of energy. Many point to the lack of insight into where that energy comes from, with reports of coal-fired plants in northern Chinese provinces drawing skepticism. The intensity of BTC in particular, thanks to its proof of work calculations, makes it a more taxing cryptocurrency. That fact alone is why InvestorPlace Markets Analyst Tom Yeung will never personally invest in Bitcoin.
Yeung is not alone. We learned that Shark Tank star Kevin O’Leary, a more recent crypto bull, is voicing similar concerns. He said that similar to talk of blood diamonds, he wants to make sure he is only investing in ethically mined Bitcoin. Another alternative that Yeung proposes is finding a more tech-savvy crypto that has less of an environmental impact.
Cardano (CCC:ADA) could be it. And importantly for investors, Coinbase is rolling out trading support for ADA starting on March 18. Right now, this is only for Coinbase Pro accounts. However, with many environmentally conscious investors eyeing ADA as a BTC alternative, this is news to watch.
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.
