Short squeezes and crypto crashes and stock market bubbles, oh my! Investors really had a lot to process on Monday. If your head is spinning as the week kicks off, InvestorPlace has you covered. So, what did the stock market do today?
- The S&P 500 closed down by 0.25%
- The Dow Jones Industrial Average closed down by 0.16%
- The Nasdaq Composite closed down by 0.38%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Rev Up EVs.
Tesla (NASDAQ:TSLA) ended the day in the red, but that did not stop its smaller peers from revving up. In fact, some of the top gainers in the stock market were companies linked to the electric vehicle space. It seems that Q1 earnings and a variety of company-specific catalysts were driving the gains.
To start, we saw Ideanomics (NASDAQ:IDEX) surge ahead of its Q1 report and on news of its latest clean energy acquisition. Canoo (NASDAQ:GOEV) launched its reservation system for three of its electric vehicles, including its flagship lifestyle car. Lordstown Motors (NASDAQ:RIDE) announced it will host a whole week dedicated to investors and analysts. Last but not least, Nuvve (NASDAQ:NVVE) soared after announcing a joint venture focused on electric school buses.
So what else do you need to know?
As InvestorPlace contributor Chris MacDonald highlighted throughout the day, times have been tough for these startups. In fact, since coming public through special purpose acquisition companies, the group has lost as much as $40 billion. Investors have been fretting over valuations, short-seller reports and pre-revenue statuses. Now, MacDonald thinks investors may be seeing some real opportunity at current price points.
Bonus Story: After investors cheered on Canoo on Monday, Wall Street learned that the startup was under investigation by the U.S. Securities and Exchange Commission. CEO Tony Aquila did not elaborate on what the probe entails.
Just Another Manic Monday
As Mark DeCambre wrote for MarketWatch, today was truly a manic Monday in the cryptocurrency markets. Bitcoin (CCC:BTC-USD), still on watch as Elon Musk calls out its energy consumption, lead the way down. Popular altcoins like Dogecoin (CCC:DOGE-USD) leapt into the selling frenzy, erasing a cumulative $500 billion from the crypto market. Crypto-related stocks that have outperformed in recent weeks also tanked, with Coinbase (NASDAQ:COIN) a key loser on the day.
However, as we recently wrote, not everyone agrees with Musk. His move to focus on the energy consumption of Bitcoin — just weeks after adding it to the Tesla balance sheet — is not sitting right with some bulls.
For instance, Galaxy Digital says that Musk and Tesla are missing the bigger picture. In a new research note, the firm highlights how the traditional financial industry uses two times more energy each year than BTC. Similarly, other writers have highlighted the economic footprint of fiat currencies.
So what is the bottom line? Perhaps for investors one of the biggest takeaways comes from how divided the market is on Bitcoin and its energy consumption. On Monday, investors got yet another take, this time from Cathie Wood. She argued in a newsletter that Bitcoin mining will actually accelerate the shift to renewable energy, making Tesla’s decision shortsighted.
MindMed Has the Market Psyched
Today was a busy day for investors in psychedelics stocks. Compass Pathways (NASDAQ:CMPS) just reported first-quarter earnings, sparking interest in its strong cash position. MindMed (NASDAQ:MNMD) also reported earnings, and shared today that it was on track to submit its new drug application for Project Lucy some time in the third quarter. For investors, this means that the company will be able to launch Phase 2b trials before the end of the year.
Generally, the market has been bullish on psychedelics stocks following a move by MindMed to uplist on the Nasdaq. Changing sentiment and easing regulations are pushing forward treatment. With that backdrop, more and more psychedelics-focused companies are coming public.
As Benzinga highlighted, that trend continues. Silo Wellness, a company that trades in Canada, is also expanding its business. It announced that in addition to psilocybin and ketamine retreats, it will also host 5-MeO-DMT retreats in Jamaica.
So what is the bottom line? Compass and MindMed have been in the spotlight, and MNMD stock was especially captivating investors on Monday. However, looking to the future, there are a handful of other promising players ready to capitalize on this red-hot growth trend.
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.