Good morning and welcome to the stock market today! We may be at the end of the trading week, but the market chaos is far from over. Elon Musk is driving us into another crypto crash, and retail investors have another deal to mourn. So what all will the stock market do today?

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• The S&P 500 is up 0.62%
• The Dow Jones Industrial Average is up 0.3%
• The Nasdaq Composite is up 1.2%

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

What Will the Stock Market Do Today? A Sweet Escape.

Investors are stuck in a weird place. This morning, Wall Street is fretting over the May jobs report, which saw the U.S. economy add 559,000 jobs. While this is an improvement from April, it falls below expectations for 670,000 jobs. The unemployment rate fell to 5.8%, a pre-pandemic low, but many Americans are still out of work and a labor shortage is putting a strain on companies.

At the very same time, a cryptic tweet from Elon Musk caused a cryptocurrency called Cumrocket (CCC:CUMMIES-USD) to gain 60%.

It seems those two things are related… and investors just wanna get away.

Covid-19 reopening has presented investors with a series of concerns: People want to get out and release their pent-up demand for goods and services. However, inflationary fears resulting from stimulus spending are hampering that, and consumer goods prices are already climbing. The U.S. has also not yet reached herd immunity levels.

But goods are not only getting more expensive because of inflation. The pandemic disrupted all sorts of supply chains, creating a system of interlocking shortages. This has made everything from semiconductors to coffee to Chick-fil-A sauce hard to come by.

As the team at Morning Brew reported, the shortages story is getting a bit more dire. California Gov. Gavin Newsom placed 41 counties under a state of emergency in response to a terrible drought. Water levels at more than 1,500 reservoirs in the state are 50% lower than this time last year. This will have impacts on fishing, electricity and food production (like almond milk).

Although these very real (and scary) factors are already at play around us, the moonshot cryptos with not-entirely-safe-for-work names continue to sparkle. Reddit stocks are back in the spotlight. The S&P 500 is still up roughly 12% year to date.

Just as Gwen Stefani crooned, it seems investors are hunting for a sweet escape. The get-rich-quick schemes of penny stocks and cryptos are providing just that.

Bill Ackman Disappoints the Reddit Crowd

Investors got a big wake-up call this morning… Bill Ackman and Chamath Palihapitiya approach blank-check companies in different ways.

Pershing Square Tontine Holdings (NYSE:PSTH), the giant SPAC from Ackman, is down more than 10% on Friday. It seems news the company was looking to acquire a 10% stake in Universal Music Group is falling flat. The deal would cost Ackman about $4 billion and give UMG a valuation north of $40 billion. It also leaves the door open for Pershing Square to find another target and complete a true merger.

Importantly, the reaction to the PSTH stock news does not seem to be about the price Ackman is paying. Instead, it is a response to hype-focused trading and wildfire rumors. Ackman flaunted Pershing Square with promises of a mature unicorn. Retail investors filled in the blanks, imagining companies like SpaceX, Bloomberg and Stripe.

Their wish-list targets are flashy — they focus on fintech, space and data. Ackman delivered the largest music company in the world.

So what is the bottom line? Special purpose acquisition companies have become synonymous with glam and glitz, bringing early stage tech companies public. Although Ackman promised to focus on a mature company, investors were still betting on the glitz associated with something like Churchill Capital (NYSE:CCIV). Instead, he is doing things a bit differently.

Although investors may be disappointed today, it is important to see through the noise on Reddit and Twitter. If you believe in Ackman and his turnaround track record, this deal is worth a closer look. Plus, the fact Pershing Square has more money in the bank and a second SPAC on the way sweetens the deal.

Elon Musk Has Become So Numb

Did Grimes dump Elon Musk? Did the new coalition of North American Bitcoin (CCC:BTC-USD) miners fail to deliver on their ESG promises? Or did Tesla (NASDAQ:TSLA) just add Dogecoin (CCC:DOGE-USD) to its balance sheet?

#Bitcoin 💔 pic.twitter.com/lNnEfMdtJf

— Elon Musk (@elonmusk) June 4, 2021

Although the answers to those questions are a mystery, something has Musk in a funk. The Tesla CEO sent the price of Bitcoin down more than 7% on Friday following some cryptic breakup memes. One image showed a couple squabbling over Linkin Park lyrics. The message contained just “#Bitcoin” and a broken heart emoji. Musk followed it up by responding to a Coinbase (NASDAQ:COIN) tweet about Dogecoin.

So what does this all mean?

Whether there is real meaning behind these tweets or not, Musk has an outsized impact on Bitcoin and the entire cryptocurrency market.

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.