Good morning and welcome to the stock market today! The sun is shining here and the major indices are making a comeback. So what else will the stock market do today? Follow along with InvestorPlace.
To start, top movers include Reddit stocks like GameStop (NYSE:GME), Express (NYSE:EXPR), Koss (NASDAQ:KOSS) and BlackBerry (NYSE:BB). Another honorable mention goes to INVO Bioscience (NASDAQ:INVO), which announced plans to expand its network of fertility clinics.
So what else will the stock market do today? Here are the top three stories to watch.
What Will the Stock Market Do Today? Focus on Bitcoin.
Bitcoin (CCC:BTC) is defying the odds and powering higher on Tuesday. As of this writing, the leading cryptocurrency is up roughly 8% over the last 24 hours to levels above $54,000.
On one hand, this recent recovery rally should not be surprising. Catalysts behind cryptocurrencies, such as growing mainstream support, remain in place. Just today, PayPal (NASDAQ:PYPL) confirmed it would acquire Israeli crypto security firm Curv. Coinbase is prepping to come public, and experts continue to set Bitcoin price predictions as high above $600,000.
On the other hand, the change in market sentiment last week was not easy for cryptos. Rising yields on the 10-year U.S. Treasury note unsurprisingly weighed on BTC. A strengthening U.S. dollar did the same. Despite these forces, Bitcoin has powered back above $54,000. To many, that is a sign that its all-time high above $58,000 could soon come back into focus.
So what should you watch today? The rally in BTC is affecting related names like blockchain stocks and crypto miners. Riot Blockchain (NASDAQ:RIOT) and Marathon Digital Group (NASDAQ:MARA) are gaining on Tuesday morning. Plus, keep your eye on smaller cryptocurrencies. Top movers today include Decentraland (CCC:MANA), an NFT haven, and Orchid (CCC:ORX).
Will Tech Stocks Rebound Today?
That question is taking over Wall Street this morning.
Tech stocks are bearing the full brunt of the shift in risk sentiment. Rising yields and inflation concerns have not been kind to the growth equities. However, that all could be changing.
Today the U.S. House of Representatives is expected to clear the last legislative hurdles with the $1.9 trillion stimulus package. If they do, it will be ready for President Joe Biden to sign, and the stock market appears to be rallying in anticipation. Although the stimulus itself is a big driver of inflation concerns, investors are also focusing on the economic benefits. Enhanced unemployment benefits and direct payments to American households will serve as a jumpstart. Plus, analysts think the stimulus will be a great way to stoke equity demand.
Want a longer-term perspective? InvestorPlace analyst Luke Lango says investors who abandon tech stocks in favor of reopening plays are missing the bigger picture. He is not denying that AMC Entertainment (NYSE:AMC) will gain when movie theaters can open en masse, or that Carnival (NYSE:CCL) will benefit from a return to cruising. However, investors who abandon powerful players like Palantir (NYSE:PLTR) and Zoom (NASDAQ:ZM) will miss out on their long-term potential.
Tesla Powers Texas, EVs Move to Hong Kong
I promise it is not just the sunny weather talking. The future really looks green.
We are seeing two instances of that on Tuesday, with the first coming from hard-hit Texas. A new Bloomberg report highlights that Tesla (NASDAQ:TSLA) is building a secretive mega-battery that it is connecting to the energy grid. Working through subsidiary Gambit Energy, it seems that Tesla is doing its part to help revolutionize the grid in Texas. That is only fair, after CEO Elon Musk poked fun at the non-profit Electric Reliability Council of Texas (Ercot).
Right now Bloomberg says Tesla is building a 100-megawatt energy storage project. Although this battery cannot power the whole state, it could at least help out 20,000 homes on a hot day.
Why does this matter? In the wake of the Texas energy crisis, experts are calling for the state to take its infrastructure into the electric future. In order to do so, it will need to invest in energy storage solutions. Tesla, a key player in the residential energy market, could make big waves leading the way.
Want another bite of EV news to power your day? Look to Hong Kong. There, Nio (NYSE:NIO), Li Auto (NASDAQ:LI) and Xpeng (NYSE:XPEV) are all planning dual listings. Such a move could help leverage further investor interest and fight off the EV stocks selloff.
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.