What Will the Stock Market Do Today, Aug. 27? 3 Big Stories to Watch.

Happy Friday investors! Today is a big day with Fed Chairman Jerome Powell speaking at the Jackson Hole symposium. Meanwhile, the Supreme Court is overturning a controversial piece of legislation, and China is trying even harder to keep its companies from seeking capital from overseas. So, what else will the stock market do today?

Street sign for Wall Street pictured in front of several American flags representing american stocks

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  • The S&P 500 is up 0.68%
  • The Dow Jones Industrial Average is up 0.64%
  • The Nasdaq Composite is up 0.84%

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

What Will the Stock Market Do Today? Watch China Take Aim at Wall Street.

China’s stringent regulations are one of the hottest topics of the year. The country’s central government is cracking down hard on money coming in from foreign countries. Earlier in the year, the focus was on cryptocurrency; as an unregulated sector of finance, the Chinese Communist Party (CCP) took exception to the profit-taking happening within its own borders by crypto miners. In fact, the country accounts for three-quarters of the total amount of crypto mined in the world. Of course, the country’s local governments have been outlawing crypto mining, and the nation’s targeting of the asset class was a major reason for crypto’s windfall a few months ago.

Well recently, the nation has been setting its sights on stocks, particularly tech stocks. The CCP has been probing its many big tech companies and handing out punishments left and right in the form of hefty fines. Alibaba (NYSE:BABA) is one such company, facing a $3 billion fine as a result of an antitrust case.

Today, the country is cracking down on initial public offerings (IPOs) in the United States. The government is seeking to protect the sensitive data of its citizens; as a result, any tech companies with access to this data will not be able to see an initial public offering on Wall Street.

This is certainly not the first time the country has taken exception with companies seeking foreign capital. Just weeks ago, the company conducted a probe into ride-sharing company DiDi (NYSE:DIDI) following its IPO. In fact, the strict rules in place in China are designed to keep foreign IPOs out of the hands of all of its companies; the stocks you see on Wall Street from China are usually shell companies used to skirt these tight regulations.

The Supreme Court Shoots Down Second Eviction Moratorium

The last couple of months have been beyond tumultuous regarding the Covid-19 pandemic. The delta variant is proving to be the most formidable challenge facing the U.S.’s pandemic efforts since the onset of the virus. But things are getting even worse as the initial legislation made to protect citizens begins to come to an end, while the virus continues to rampage.

There’s a lot of talk around today’s Jackson Hole symposium. Many are eager to hear from Fed Chairman Jerome Powell on the central bank’s plans for tapering pandemic spending. As the economy becomes re-stimulated in the wake of vaccinations, many would argue that it’s time to cut down on the spending economy and to start returning to normal. But there’s plenty of evidence that things aren’t normal; in fact, the symposium got moved to a virtual conference because of the delta variant’s spread.

And even though things are most definitely not normal, there is a camp of people who think we should be returning to a pre-pandemic world. One such camp are those celebrating the Supreme Court’s decision to overturn the second eviction moratorium.

The Centers for Disease Control and Prevention (CDC) put in place a second moratorium to protect tenants who can’t pay their rent because of the pandemic. The first moratorium, put in place by former President Donald Trump’s administration, expired at the end of July. President Joe Biden is declining to extend this moratorium, so the CDC implemented its own moratorium.

The CDC’s mandate didn’t hold up in court — the institution lacks the same federal authority that the first moratorium had. As a result of this decision, held up by a 6-3 vote, 3.5 million Americans will face eviction in the next two months. The decision is a true signifier of things “returning to normal,” even as delta variant cases are ramping up significantly.

What Else We’re Watching

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.

Article printed from InvestorPlace Media, https://investorplace.com/2021/08/what-will-the-stock-market-do-today-3-big-stories-to-watch-8-2-2-2/.

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