What Did the Stock Market Do Today? 3 Big Stories to Catch Up On.

We are finally at the end of the week, and Wall Street could use a break. After a crypto crash and inflationary fears rocked the market, investors likely are dreaming of fruity cocktails and bright-blue water. But before you log off and wade into the weekend, make sure you are all caught up. So what did the stock market do today?

Street sign for Wall Street pictured in front of several American flags representing american stocks

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  • The S&P 500 closed down by 0.08%
  • The Dow Jones Industrial Average closed down by 0.36%
  • The Nasdaq Composite closed down by 0.48%

So what else did the stock market do today? Here are some of the top stories.

What Did the Stock Market Do Today? Buy Tesla?

Tesla (NASDAQ:TSLA) has had a rough start to the year. Shares are down 25% over the last three months, with much of that pain coming in the last four weeks. The electric vehicle leader may be pushing through a chip shortage and setting new delivery records, but investors are losing confidence.

That much was highlighted this week, when new reports highlighted that Michael Burry of Big Short fame had a sizeable short position against Tesla. Through his Scion Asset Management, he is wagering a $530 million bet against the EV leader. Is it time to follow Burry and give up on Eon Musk?

According to InvestorPlace Markets Analyst Joanna Makris, investors should stop panicking. In fact, they should buy Tesla stock on the dip now.

Makris understands where the bear case is coming from. Musk has a big personality, and his social media accounts could use a few (dozen) more proofreaders. In recent days he has sent the crypto market into an absolute whirlwind, and previously, his messages about the Tesla stock price have chaos for his own company. Plus, his stance on crypto in general may be troubling to EV fans. Add in a debate around zero-emission credit sales, and it is clear why some investors are bearish.

But instead of giving into the noise, Makris says investors should get back to the basics. When they do, she thinks they will see Tesla is a disruptive tech company with years of growth ahead of it. Factor in an eco-friendly White House, and Tesla is a buy here.

You can read more here.

China Continues to Crack Down

Today, Chinese officials created further panic in the cryptocurrency market.

Earlier this week, Reuters reported that a trio of industry groups announced that China was reaffirming its anti-crypto stance. In doing so, the government would block financial institutions from participating in any crypto-related transactions. Official statements highlighted that this is a result of recent price volatility, and comes as China tries to protect its consumers.

Then, Vice Premier Liu He took things a step further. He shared today that he believes even more restrictions are needed to protect Chinese financial systems. Specifically, he is taking aim at any Bitcoin trading and crypto mining that happens in the country. Although he did not elaborate, the promise of restriction sparked panic. Especially important is the fact that so much crypto mining happens in China. According to one estimate, China produced more than half of the total Bitcoins mined in 2020.

So where do things go from here? To start, many crypto bulls have taken to social media to share that they are not concerned with the China crypto news. Although the potential for restrictions on Bitcoin mining is worth watching, they say this stance is not new. China has previously banned access to crypto exchanges and initial coin offering (ICO) platforms.

The other thing to watch in all this is what could emerge from the ashes. With Bitcoin stumbling so much in recent days, some are already looking for the next big thing. According to InvestorPlace analyst Luke Lango, this is the perfect mindset. Lango recommends looking for altcoins that are truly technologically revolutionary… and that can pioneer a new generation of crypto gains. You can read more here.

Winners, Losers, Honorable Mentions

Winners: Privacy-related cryptocurrencies were big winners this week. News that the U.S. Treasury was seeking to gain insight into crypto transactions sent investors hunting for anonymity. Zcash (CCC:ZEC-USD), Horizen (CCC:ZEN-USD) and Monero (CCC:XMR-USD) all promise to deliver. Essentially, they offer anonymized transactions that prevent blockchain analysis.

Losers: Bitcoin (CCC:BTC-USD) has been a winner in recent weeks, but these last few days have not been kind. Heightening restrictions in China and Hong Kong, as well as the Treasury news, have been weighing on BTC prices. Investors can count electric vehicle makers like Lordstown Motors (NASDAQ:RIDE) and Nikola (NASDAQ:NKLA) as other losers. Competitive pressures from Ford (NYSE:F) and its F-150 Lightning will be tough for EV startups to overcome.

Honorable Mentions: The newly launched Bezoge Earth (CCC:BEZOGE-USD) crypto may not be a wise investment at this point, but its marketing team sure deserves a round of applause. Can Bezoge Earth prove that Jeff Bezos is the dominant billionaire?

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Sarah Smith is the Editor of Today’s Market with InvestorPlace.com. 

Article printed from InvestorPlace Media, https://investorplace.com/2021/05/what-did-the-stock-market-do-today-3-big-stories-crypto-crackdown-tsla-stock/.

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