Today was a busy day on Wall Street. Investors were revving their battery-powered engines, and taking stock of campaigns to promote streaming services and short squeezes. So in between all of that, what did the stock market do today?
- The S&P 500 closed higher by 1.06%
- The Dow Jones Industrial Average closed higher by 0.55%
- The Nasdaq Composite closed higher by 1.77%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Talk Crypto Taxes.
President Joe Biden and his administration had a wake-up call for the crypto market, just as Bitcoin (CCC:BTC-USD) and its peers were riding a #DiamondHands boost. The Biden administration announced that part of its plan to beef up the Internal Revenue Service will involve taking aim at crypto.
Previously, investors learned that Biden wanted to allocate $80 billion in additional funding to the IRS. According to his plan, this will allow the IRS to have better enforcement, and ultimately bring in net revenue of $700 billion. The second part of this plan involves getting better insight into the realm of cryptocurrency transactions.
Just a year after adding a line item about crypto on Form 1040, the IRS wants more transparency. The proposal calls for businesses to report all crypto transactions greater than $10,000. It also will place greater scrutiny on companies that provide custodial services or crypto exchanges.
So what is the bottom line? Right now, the proposal takes aim at businesses dipping their toes into crypto waters. However, given heightened regulation in the Chinese crypto market earlier this week, it is safe to say investors are a little bit squeamish.
The New F-150 Hits EV Stocks With Lightning
Ford (NYSE:F) struck the pickup truck market with a bolt of lightning last night when it revealed its all-electric F-150 Lightning. The standard model with a 230-mile range will come in below $40,000.
Investors seem to see the F-150 Lightning as the perfect chance for Ford to rebrand and enter the all-electric world. Its signature pickup truck is one of the best-selling vehicles on the market, and it brings with it great consumer recognition. Given the popularity of pickups versus other models, the decision to electrify the F-150 also makes sense.
Beyond providing a nice boost to Ford, it seems like the F-150 has the potential to rock other EV stocks. That is because, as The Verge reports, the new pickup truck has a very competitive price. Right now, its range and price are in line with the Tesla (NASDAQ:TSLA) Cybertruck, but the F-150 comes from a more familiar brand and delivers a more traditional product. It also is cheaper than incoming options from Rivian, General Motors (NYSE:GM) and Lordstown Motors (NASDAQ:RIDE).
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Considering that, it seems the legacy automaker is ready to shed its dinosaur shell and rev its engines. Other EV stocks took a hit today on the news.
Welcome to the Passion Economy
According to one expert, the notion of the human capital is about to become even more digital.
Investors are likely familiar with the rise of the creator economy, and the ways in which Covid-19 further accelerated this trend. Platforms like Clubhouse, Cameo, Patreon and Substack are flourishing, raking in funding from those eager to profit. Big-name tech companies like Twitter (NYSE:TWTR) and Microsoft (NASDAQ:MSFT) have been eyeing acquisitions, and sometimes, outright adding new features to better compete.
Li Jin, who wrote “The Passion Economy and the Future of Work” while working for Andreessen Horowitz, sees even more weight behind the trend. She defines the passion economy as a next step up — a world where everyone turns their passions into livelihoods. That is not to say that everyone will quit their jobs to write newsletters on Substack or work as influencers. However, the idea of influencing will bleed into all professions. As she tells it, each job will require its holder to care about cultivating a personal brand and building an online influence.
One more immediate ramification? Still in the world of venture capital, Jin thinks the passion economy will start to quickly disrupt VCs. Not only will investors look for startups that cater to creators, they will become creators themselves.
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.