The weekend is here and it’s time to log off! But, before you go, what did the stock market do today?
The S&P 500 gained 1.09%, while the Dow Jones Industrial Average gained 0.67%. The tech-heavy Nasdaq Composite also gained, to the tune of 1.44%. Stocks continued their recovery rally after selling off in the wake of news that President Joe Biden is revaluating the capital gains tax.
So what else did the stock market do today? Here are the top stories.
What Did the Stock Market Do Today? Watch Musk.
Elon Musk has had a bad week. In summary:
- On Saturday, a fatal Model S crash killed two individuals in Harris County, Texas. Police responding to the accident said no one was in the driver seat. Musk said on Twitter that Tesla data shows autopilot was not engaged, but many are not convinced. The National Transportation Safety Board is investigating the crash.
- Consumer Reports then released a video showing that it is possible to trick the autopilot system. Essentially, this would prompt the feature to turn on even if someone was not in the driver seat.
- Then, in China, Tesla faced similar concerns over the safety of its vehicles. One protestor climbed on top of a vehicle at the Shanghai Auto Show, claiming that faulty breaks caused a crash that injured her parents. In response, Tesla says that data show the car was traveling nearly 120 kilometers per hour before crashing.
- However, Musk and Tesla angered many with how they responded to the protests at the auto show.
- Chinese media outlets have said company apologies were “insincere.”
- Lastly, analysts are pointing to the Shanghai Auto Show as proof that the EV leader will face rising competition.
So what comes next? Musk got some relief this morning with the launch of the NASA-2 SpaceX mission. Four astronauts are currently en route to the International Space Station, sparking enthusiasm for Musk’s other business endeavor. However, with Tesla in the crosshairs, investors may want to look at these seven companies that could be the next big thing.
What Does the Digital Renminbi Mean for Big Tech?
As the Wall Street Journal tells it, China is once again disrupting the global financial system. After first introducing paper money, China is now turning its legal tender into computer code. The end result is a digital central bank currency, a so-called digital renminbi.
So how will it work? And what is its purpose?
Essentially, the central bank will issue the new currency and then send it to six of the largest commercial banks. App providers like Alipay and WeChat will also receive the digital yuan. From there, the commercial banks will be responsible for making sure consumers have access to the digital currency. One way this could play out is through exchange programs, where bankers could swap out coins and cash for the digital yuan. Officials cite a variety of purposes for the switch, including a chance to accelerate the transition to a cashless economy. Other benefits include financial stability, which experts say will come from the financial tracking associated with the digital yuan.
For investors, there are two things to note. The first is that U.S. officials are already on watch as a result of the digital yuan. News that China is pressing forward with this innovation has prompted Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell to say a digital dollar could be a possibility. This ties into the second takeaway. As Craig Mellow wrote for Barron’s, some analysts are starting to wonder what this will all mean for Alibaba (NYSE:BABA) and Tencent (OTCMKTS:TCEHY). As China leans into its centralized digital currency, will these companies and their payments platforms be necessary?
Right now, the takeaway is that Alibaba and Tencent have more than enough ways to make money. However, in the long term, it is something prompting serious conversation. And if a digital dollar were to follow in the United States, what could that mean for Big Tech companies like Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) that are also leaning into payments tech?
Consider this food for thought as you head into the weekend.
Winners, Losers, Honorable Mentions
Winners: Skillz (NYSE:SKLZ) and MicroVision (NASDAQ:MVIS) are two companies that many on Wall Street love to hate. Skillz specializes in mobile esports and MicroVision promises to disrupt autonomous vehicles with its laser beam scanning (LBS) tech. This week saw both of the hard-hit stocks erupt, with r/WallStreetBets jumping and talk of short squeezes gaining.
Losers: Cryptocurrencies like Bitcoin (CCC:BTC-USD) and Dogecoin (CCC:DOGE-USD) started this week as big winners, coming off the Coinbase (NASDAQ:COIN) direct listing. #DogeDay on Tuesday was supposed to be a major catalyst, and investor hopes were high. Unfortunately, cryptos have taken a big hit, with BTC falling below $50,000. Here is what you should know about the crypto selloff now.
Honorable Mentions: Speculative cryptocurrency SafeMoon (CCC:SAFEMOON-USD) certainly deserves an honorable mention, after rocketing more than 100% in a single trading day earlier this week. Promising to reward long-term holders and punish those who sell, the SafeMoon crypto quickly attracted a large social media following. Although not everyone is on board, it took the crypto world by storm. Another honorable mention goes to Playboy (NASDAQ:PLBY), which is looking to rebrand itself with a focus on NFTs.
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.