Today was another busy day in the stock market that brought lots of red as well as big cryptocurrency gains. So what all did the stock market do today?
- The S&P 500 closed lower by .67%
- The Dow Jones Industrial Average closed higher by .06%
- The Nasdaq Composite closed lower by 1.88%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Tech Stocks Suffered.
The major indices opened in the red, and that pain continued throughout the trading day.
Importantly, the Nasdaq Composite lead the way down, posting one of its worst days since March. As InvestorPlace contributor William White highlighted, there were a variety of reasons for this decline. One comes from Treasury Secretary Janet Yellen, who warned that interest rates may have to rise. Yellen said this on Monday, in the context of the potential for an overheating economy.
Investors likely know that a fear of rising rates has weighed on the market for a while. This particularly hurts tech stocks, because they are growth-focused and benefit more from a low-rate environment.
Adding to the tech stock woes, Wells Fargo analyst Chris Harvey came out with a bearish note. He said that in the coming weeks and months, investors may move away from tech stocks. His reasoning? Right now, he worries that tech stocks are a combination of high growth and high risk.
So what is the bottom line? We have seen this before, with fears of rising rates and sector rotation hurting tech leaders like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). However, with the Covid-19 reopening story continuing to unfold, investors should avoid panicking.
Millennials Are Flocking to Crypto Money
A new survey from Mastercard (NYSE:MA) yielded surprising results. According to the report, 40% consumers plan to use cryptocurrencies in the next year.
Breaking down the results, Mastercard found that consumer interest in using cryptocurrencies is particularly strong among millennials. In fact, 67% said they were more likely to use cryptos now than a year ago. More than 75% said they are would use crypto coins, but that they needed to better understand how they worked. Much of this interest comes in the wake of Covid-19, which has prompted a rise in cashless payments.
Investors should note that this is just one survey — I know my grandmothers certainly are not about to pay with Bitcoin (CCC:BTC-USD) anytime soon. However, it highlights that cryptocurrencies are really gaining mainstream attention.
Take Dogecoin (CCC:DOGE-USD) for example. Today, the meme coin hit an all-time high above 60 cents, on the back of news that eToro would support Dogecoin trading. The Oakland Athletics announced that customers could buy tickets with DOGE, and the Winklevoss twins added trading support on their Gemini exchange. Celebrities, including Meek Mill, continue to hop on the DOGE train.
Something that started as a literal joke has proven its ability to disrupt finance, and investors should take note. Read more about where Dogecoin prices could go here.
A Little Bit of Post-Pandemic Bling
In the middle of the pandemic, the market lost some sparkle… and I am not just talking about the March 2020 selloff. One industry report shows that global diamond sales fell 15% in 2020 due to a variety of factors, including lockdowns, travel restrictions and economic uncertainty. De Beers also highlighted that it was hard for buyers to travel to sale sites.
In response, jewelers are shaking things up.
Now part of LVMH (OTCMKTS:LVMUY), Tiffany & Co. is trying to appeal to a wider market with its engagement rings. Starting this month, the jeweler will begin offering engagement rings for men, citing traditional signet rings as inspiration. Tiffany says that this is in response to growing demand from male shoppers, and follows moves from newer players in the industry. As Megan Hills wrote for CNN, it also recognizes same-sex marriages and provides couples with more options.
In a similar move, Pandora (OTCMKTS:PANDY) is hoping to shake things up, moving away from mined diamonds. Pandora says this is a move to recognize growing consumer interest in sustainability. The team at Morning Brew suggests it is in response to falling demand in 2020.
So where do things stand? It seems that Covid-19 is forcing jewelers to innovate, and younger consumers are growing in purchasing power. However, De Beers says that younger consumers still are fans of mined diamonds… and that the traditional diamond industry is recovering.
Either way, it is clear that the pandemic has changed everything, from the rings we wear to the jobs we work and the places we go. The next few months will bring back some sparkle, whether it be mined or lab-grown.
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 the Editor of Today’s Market with InvestorPlace.com.