What a busy day in the stock market today. We saw big moves in space stocks, cruise stocks, electric vehicle names and even associated charging plays. It seems that Monday brought news to all of these red-hot sectors. So what did the stock market do today? Dive in with InvestorPlace below.
To start, what happened with the major indices? The S&P 500 gained 0.7%, while the Dow Jones Industrial Average gained 0.32%. The Nasdaq Composite all gained, ending the day higher by 1.23%.
What else did the stock market do today? Here are the top three stories.
What Did the Stock Market Do Today? Study Up on NFTs.
A few weeks ago, you probably found yourself explaining r/WallStreetBets and the GameStop (NYSE:GME) saga to your mom, grandpa and probably even some of your college classmates. Have you found yourself doing the same with non-fungible tokens?
The crypto assets are entering the mainstream in confusing, comical and concerning ways. Celebrities like Jack Dorsey and Elon Musk have entered the NFT arena, and other sellers are auctioning off taco gifs, digital weed and farts. As serious money floods into the digital asset sales, some investors are looking for a more direct approach to profit. That method? Finding NFT stocks.
Today, we really saw the power of that buying interest. Takung Art (NYSEMKT:TKAT), an online fine art marketplace, saw its shares gain 60% in Monday trading. Jiayin Group (NASDAQ:JFIN), an online finance marketplace, gained nearly 80% today.
So what should investors know today? Importantly, it seems the rally in NFT stocks came alongside major headlines about the assets. Dorsey finally sold his first-ever tweet for an incredible $2.9 million. That high-profile sale was joined by auctions from Time and the robot, Sophia. As investors look for companies with explicit ties to non-fungible tokens, it seems that speculative bets like TKAT stock and JFIN stock will do in the meantime.
Stay cautious, keep reading up on NFTs and take a deep breath next time someone asks for an explainer.
Reopening Trades Hit a Few Covid-19 Roadblocks
Everything seems to be working in favor of so-called reopening stocks. Covid-19 vaccines are rolling out, Congress just released $1.9 trillion into the economy and the weather is getting warmer. However, today brought declines in airline stocks and cruise stocks.
Driving the downward moves seems to be a sense that the reopening timeline is unclear. Perhaps more importantly, there is a fear that Covid-19 recovery is already priced into these stocks. The argument there? Over the last year, investors piled in at the lows in names like Carnival (NYSE:CCL) and American Airlines (NASDAQ:AAL). Everyone knew that the pandemic would end at some point, and when it did, consumes would start flying and cruising again. For those early buy-the-dip investors, that meant the chance for massive gains. Some on Wall Street are worried that all of those gains have already been collected.
There is also one more roadblock on the way to reopening gains. Regulators are still not sure what to do about travel. With spring and summer vacation season emerging, some public health officials have been quick to caution against any travel. Airline traffic is just starting to pick up, and while exciting to investors, those figures have the Centers for Disease Control and Prevention worried. Plus, the CDC is not quite ready to lift no-sail orders on cruise operators.
These hiccups are reflective of the uncertainty we are surrounded in — and the back and forth in the news. Stay calm and committed to long-term growth opportunities.
D.C. Has Cannabis Stocks in Limbo
What is up with cannabis stocks? Aphria (NASDAQ:APHA), Tilray (NASDAQ:TLRY), Sundial Growers (NASDAQ:SNDL) and Canopy Growth (NASDAQ:CGC) all found themselves in the red on Monday.
It seems that investors — and lawmakers — are just not sure what to do.
Some on Wall Street are rallying behind the cannabis space, betting on federal legalization in the United States and broad international expansion. Others worry that bidding up Canadian growers on U.S. hopes is not a guarantee. Complicating everything is what is actually happening in Congress.
Lawmakers are broadly pushing forward with measures to reform existing marijuana laws. Rep. Ed Perlmutter introduced a bill on Friday that would remove banking restrictions from the U.S. cannabis industry. While this would remove some of the risk of an all-cash business, experts are quick to point out that this is not a cure-all. Importantly, the bill does not remove listing restrictions or tax complications. Senate Majority Leader Chuck Schumer is also entering the space, promising to introduce a marijuana reform bill.
But the road to federal legalization is not clear. In fact, several White House staffers report being fired, suspended or asked to work from home after revealing past marijuana use during their background checks. Although Press Secretary Jen Psaki says only five staffers faced termination, the news appears to be rattling Wall Street. Is fully legal recreational marijuana possible under Biden?
At this point, it seems investors will have to stay tuned. Key bills appear set to make their way through Congress, but the business as a whole is in limbo.
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.
