Meme stocks mania, rebounding crypto prices and all-time highs in the stock market. What a bright and busy day! It seems that investors are still rejoicing following full approval of the Covid-19 vaccine from Pfizer (NYSE:PFE), and generally embracing a new sense of optimism regarding the pandemic. With all that in mind, what did the stock market do today?

Source: Shutterstock

• The S&P 500 closed up by 0.15%
• The Dow Jones Industrial Average closed up by 0.09%
• The Nasdaq Composite closed up by 0.52%

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

What Did the Stock Market Do Today? Make Memes.

Seemingly out of nowhere, GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC) and their meme stock peers took off on Tuesday. GME shares closed out the day higher by nearly 30%, while AMC stock ended the day up 20%.

Importantly, it seems there is no specific news driving this move higher. Instead, meme stocks are once again gaining power with the retail investing community. GameStop and AMC were joined by old favorite Koss (NASDAQ:KOSS), as well as newer meme plays Robinhood (NASDAQ:HOOD) and ContextLogic (NASDAQ:WISH). The lack of company catalysts did not stop the pain for short sellers; Reuters reports that Tuesday trading dealt a $1 billion blow to shorts.

According to analysts, today also marked the end of a recent trend that saw lower volatility in meme stocks. GameStop experienced trading volume of more than 14 million shares today. That compares to an average of just 5.3 million in recent times. This return of volatility helps to explain the outsized move in meme stocks.

Perhaps one reason for the move higher is the renewed positive sentiment in the market. Yesterday, AMC was a top gainer following the approval of the Pfizer Covid-19 vaccine. Retail investors were hopeful that a fully approved vaccine could get more patrons in theaters. Although other meme stocks are not all reopening plays, the general bullishness could be contributing to the move today.

So what is the bottom line? Keep a close eye on meme stocks. We all know by now that short squeeze mania can be quite powerful.

Read more about the latest meme stocks surge here.

Get Ready for $3.5 Trillion in Spending

Today Democrats in the House of Representatives just paved the way for $3.5 trillion in spending on things like healthcare and child care. Specifically, lawmakers passed the $3.5 trillion budget resolution that will later allow them to use the budget reconciliation process. This means that Democrats will not be dependent on Republican votes.

So what else do you need to know? This budget resolution complements the $1 trillion infrastructure bill that is making its way through Congress now. As part of a compromise, the initial infrastructure bill scaled back its focus to more traditional elements of spending (think roads, bridges). The bipartisan legislation does include spending on things like electric vehicle charging, but it fails to dabble in softer elements of infrastructure.

That is where the budget resolution comes in. President Joe Biden had laid out a plan to fund things like better healthcare and child care, as well as initiatives that would combat climate change. These elements of soft infrastructure lacked the necessary bipartisan support.

Now, investors can get ready for this $3.5 trillion — and the boost it will bring to relevant sectors.

What Else We’re Watching

• Today, stablecoin Tether (CCC:USDT-USD) was making news for printing more tokens for the first time in months. However, it seems that investors should really be paying attention to the Terra (CCC:LUNA-USD) crypto. Read more about the Tether-Terra link here.
• Crypto fans should also be paying close attention to El Salvador. There, lawmakers are containing to get ready for the rollout of Bitcoin (CCC:BTC-USD) as legal tender. The country now has 200 Bitcoin ATMs to help citizens convert their currency. An official crypto wallet will also be available at the start of September.
• Following the approval of the Pfizer (NYSE:PFE) vaccine, Airbnb (NASDAQ:ABNB) caught the recovery bug. Shares closed Tuesday out higher by nearly 10%. This move also comes after the company announced it would provide temporary housing for Afghan refugees.
• Remember the $72 fried rice that took social media by storm? The dish is now back with a $500 price tag, and proceeds will go to charity.

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.