The delta variant appears to be at the forefront of investors’ concerns today as the stock market as a whole takes some devastating blows. So what did the stock market do today?
- The S&P 500 closed down 1.59%
- The Dow Jones Industrial Average closed down 2.09%
- The Nasdaq Composite closed down 1.06%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Took a Big Hit from the Delta Variant.
The major indices took a walloping today, with each of the big three closing with over 1% losses. The Dow Jones Industrial Average is suffering from a 700-plus-point loss, representing the worst of the damage. It seems investors are chalking up these losses to renewed coronavirus concerns, with the delta variant ravishing the U.S.
Investors have pushed hard in the economic recovery effort in the U.S., spending money even as inflation raises commodity prices higher. But while the increased spending in June may have buoyed the market for a period of time, the economy is still at the mercy of the coronavirus pandemic. As NPR reports today, airlines and hotels suffered some of the worst hits to their stocks today, suggesting a fear of travel creeping up on Americans once again. Not to mention, the Olympic Games rollout in Tokyo is being hampered drastically by a number of positive Covid tests from athletes.
The indices’ slumps cast a worrying shadow over the state of economic recovery. The S&P 500 had just two down weeks in the last eight, and now it is suffering some of its worst losses in that timeframe. Other major industries are taking hits, too. Oil prices are down as OPEC and allied nations agree to ramp up oil production at some point this year.
What we’re coming to is just another precipice for the economy to overcome on the route to recovery. As in CNBC’s OPEC report, these losses present themselves as buying opportunities to more bullish investors. Indeed, as Brad Lineberger of Seaside Wealth Management says, “embrace the volatility, because it’s why investors are getting paid to own stocks.”
Zoom Inked Some Major Deals
Pandemic hero Zoom (NASDAQ:ZM) continues to impress investors even as we move ourselves back into the office and our children back into school. The video communications company is completing its biggest acquisition yet and reminding us that although we might not be video chatting as much anymore, the company is just as valuable to work as it was a year ago.
That’s because the company is buying cloud contact center company Five9 (NASDAQ:FIVN). Zoom will absorb Five9 in what will be the largest deal Zoom has ever seen. At $14.7 billion dollars, the transaction stands as far and away the largest acquisition in the company’s history; it’s Zoom’s only multi-billion-dollar deal.
The merger reminds investors of just how ingrained Zoom is in the new age of work and schooling. Taking over our lives in 2020 as we turned to video communications for work and socialization, the company became a household name overnight. Now, much work must be done to ensure it stays relevant.
Of course, with the explosive popularity of cloud computing recently, the deal will certainly help. Five9 specializes in cloud-based contact center software. In its press release, Zoom says it hopes to combine Five9’s call-center-as-a-service model with Zoom’s video communications capabilities to further bridge the gap between businesses and their customers.
Zoom is sure to slow its growth in the months to come; after all, the meteoric rise it saw last year is simply not sustainable. This new move might be what it takes to spur something new and continue the company’s momentum as things continue their return to normalcy.
What Else We’re Watching
- Wildfires in the Pacific Northwest continue to rage. The Federal Emergency Management Agency (FEMA) administrator Deanne Criswell is heading to affected states today to plan an active response to the disaster with local and state officials, as well as tribal representatives.
- Nike (NYSE:NKE) could very well run out of sneakers soon. The company, who outsources a vast majority of its sneaker production to facilities in Vietnam, is running very low on stock. Three of its major producers’ factories are temporarily shuttering their doors as they deal with major coronavirus outbreaks.
- Unilever (NYSE:UL) brand Axe is teaming up with Dogecoin (CCC:DOGE-USD) on a branded can of body spray. Now you can associate those sweet crypto gains with the smell of a middle school locker room.
On the date of publication, Brenden Rearick 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.