Investors likely needed an extra cup of coffee to stay on top of all the news on Wall Street today. A high-profile initial public offering drove headlines, and lawmakers passed more Covid-19 stimulus. So what else did the stock market do today? Dive in with InvestorPlace below.
To start, the major indices mostly remained in the green as bullish sentiment made its way back to Wall Street. The S&P 500 gained 0.6%, while the Nasdaq Composite shed 0.04%. The Dow Jones Industrial Average hit a new intraday high, and gained 1.46% at the close.
Investors should also note that the top movers included a wide mix of equities. New IPO Roblox (NYSE:RBLX) unsurprisingly took the top spot, while GameStop (NYSE:GME) was close behind. General Electric (NYSE:GE) continued to drum up attention after announcing its plans for a 1-for-8 reverse stock split.
So what did the stock market do today? Here is a look at the top three stories.
What Did the Stock Market Do Today? Praise Congress.
Undeniably one of the largest stories on Wall Street today is that the House of Representatives passed the $1.9 trillion stimulus bill, sending it on its way to President Joe Biden.
The bill, called the American Rescue Plan, includes $1,400 stimulus payments for individuals making up to $75,000. It also extends $300-per-week enhanced unemployment benefits through early September. These have been items of key importance to investors because of their potential to buoy consumer spending and stoke equity market participation.
Investors should note though the American Rescue Plan includes much more. It comes with increased child tax credits, emergency rental assistance, $46 billion for Covid-19 testing and tracing and another $7.25 billion for Paycheck Protection Program loans.
Biden says he plans to sign the bill on Friday, and that $1,400 payments could start making their way to households by the end of March. As Orion Rummler wrote for Axios, this could very well be the a defining piece of legislation for Biden. This is because it should provide a much-needed to boost and help ease economic pain.
One other thing to note? For all the talk of inflation, the numbers ended up being not all that bad. The U.S. Department of Labor shared its Consumer Price Index (CPI) on Tuesday. Core consumer prices increased by 1.3% in February, lower than expectations for 1.4% growth.
Sometimes Rockets Crash
Today was simply a wild day for Reddit stocks.
GameStop started an impressive rally, gaining 40% from its opening price and getting dangerously close to $400. The move had Redditors calling for GME stock to hit a new all-time high, and for a second, it seemed like it would happen in Wednesday trading. GameStop has been on a tear all week following news that Ryan Cohen will lead a new strategic committee for the video game retailer.
However, the rally did not lost. GME shares dipped as low as $172 before rebounding, but they failed to retouch $300 on Wednesday. The wild swings triggered the alternative uptick rule, also known as the short-sale restrictions. Essentially, this rule form the U.S. Securities and Exchange Commission is designed to prevent flash crashes and quell market volatility. For investors, it seemed like a victory against short-sellers. For those unfamiliar, the SSR stocks rule prevents investors from short-selling while shares are falling.
The other Reddit stocks were not immune from wild moves. Express (NYSE:EXPR) and AMC Entertainment (NYSE:AMC) also made waves on Wednesday. Koss (NASDAQ:KOSS) rocketed higher on hopes for huge growth in the headphone market.
Roblox Debuts Into Meme Stocks Frenzy
Video game company Roblox finally hit the New York Stock Exchange today.
Investors are excited about Roblox for a variety of reasons. For one, it represents the strength of the video game market during Covid-19. The company said it saw massive business growth in the first nine months of 2020, and its daily active user figure nearly doubled.
Analysts also think that RBLX stock will benefit from its youthful user base. As InvestorPlace Web Editor Vivian Medithi highlighted today, more than half of all American children play Roblox games. Roblox may not be as familiar to older generations of investors, but it has high penetration in households. To some on Wall Street, this makes Roblox a potentially perfect target for the meme stocks frenzy. Combine out-of-the-box user-generated games with young users and a r/WallStreetBets post, and we could see a major post-IPO move.
Although not all analysts feel the same, this narrative is one to watch. Price targets on RBLX stock are currently as high as $120. Shares closed higher by today by more than 50%, touching $69.
One more thing? It is always important to know what you are investing in. If you are not familiar with Roblox, take a look at its top five money-making games.
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.