The stock market is simply not slowing down. After a busy start to the week, Tuesday brought more big news and big moves to Wall Street. Cryptocurrencies continued to heat up, a few speculative biotech stocks soared and electric vehicle plays saw a light at the end of the tunnel. So what did the stock market do today? Dive in with InvestorPlace below.
To start, the major indices continue to stall out after hitting record highs. The S&P 500 shed 0.1%, while the Dow Jones Industrial Average dipped 0.29%. The Nasdaq Composite dropped 0.05%.
So what else did the stock market do today? Here are the top three stories.
What Did the Stock Market Do Today? Prep for the Coinbase IPO.
Cryptocurrencies continued to dominate on Tuesday, with several popular altcoins leading the way.
Cardano (CCC:ADA-USD) got caught up in the frenzy, gaining on hopes that it could be the next Bitcoin (CCC:BTC-USD) in terms of market dominance. Also helping matters is the fact that now, the Cardano blockchain is 100% decentralized. XRP (CCC:XRP-USD) continued to shrug off lawsuit woes, surpassing $1 for the first time in years. And meme favorite Dogecoin (CCC:DOGE-USD) also gained, as investors eye price targets of $1 or higher for 2021.
The reality is that mainstream support continues to grow for cryptos. Major retailers and financial institutions are working to integrate digital payments. More and more altcoins are coming into the spotlight. Even Bitcoin, which appears to be stalling out, is captivating analysts with near-term price targets above $100,000.
So what should investors be watching?
The short answer is the Coinbase IPO. The crypto exchange is set to come public via direct listing on Wednesday, April 14. Already, news of its stock market debut is turning heads. As InvestorPlace contributor William White wrote this morning, this is because Coinbase is the largest such exchange in the United States, and it continues to grow.
In fact, Coinbase is seeing impressive growth. In a voluntary first-quarter conference call, Coinbase announced that its active users jumped 117% quarter-over-quarter. It logged 2.8 million active users in Q4 2020. This past quarter that number hit 6.1 million. Overall, verified users climbed from 43 million to 56 million.
COIN stock already promises to make headlines when it hits the Nasdaq. Be sure to keep the Coinbase IPO at the top of your watch list.
EV Stocks: Two Paths Forward
Goldman Sachs made waves on Tuesday when it released six top stock picks among EV stocks. Unsurprisingly, industry leader Tesla (NASDAQ:TSLA) topped the list. With Elon Musk continuing to pave the way for other all-electric companies, analysts have been hopping on board with price targets as high as $3,000.
However, TSLA stock may have been the only unsurprising pick on the list. Right behind it is Volkswagen (OTCMKTS:VWAGY), a traditional automaker that has been quickly pivoting to the all-electric world. Helped by a partnership with QuantumScape (NYSE:QS), Volkswagen has set lofty goals for electrifying its vehicle pipeline. Other picks include overseas battery and auto parts suppliers, which Goldman analysts see as having maximum upside potential. You can read more about the Goldman Sachs EV stocks list here.
It seems that right now, one way forward for investors is finding little-known picks that can benefit from the accelerating trend. Another path forward involves looking at the most-familiar companies.
Today, General Motors (NYSE:GM) stock hit an all-time high thanks to electric vehicle news of its own. The company confirmed that it is planning on producing an all-electric Chevrolet Silverado pickup truck. This is part of its previously announced $2.2 billion investment in its Detroit plant — and part of its broader electrification plan. Just over the weekend, General Motors unveiled its GMC Hummer EV, another eco-friendly take on a popular vehicle.
EV stocks have certainly hit potholes in recent weeks, but the long-term story remains bright.
Robots Are Taking Over Wall Street
Today Sarcos Robotics confirmed plans to come public through a reverse merger with Rotor Acquisition (NYSE:ROT). For those unfamiliar, Sarcos is a firm that specializes in developing robotic exoskeletons. It promises to increase productivity among industrial and military workers, and to make certain tasks easier. For instance, as InvestorPlace Web Editor Nick Clarkson highlighted, its exoskeleton helps wearers lift heavier objects.
So what should investors take away from this news?
The first is that robotics companies are continuing to advance technologically, making robotics stocks all the more interesting. The second is that ROT stock may come with some baggage. As Dan Primack wrote for Axios, Rotor Acquisition recently led a funding round for Sarcos. Plus, the blank-check company participated in a CES product unveiling. That may be too much for the U.S. Securities and Exchange Commission to handle.
Keep the Sarcos SPAC merger on your radar for its robotics potential, but know the road ahead may be risky.
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.
