What Will the Stock Market Do Today, Aug. 24? 3 Big Stories to Watch.

Good morning and welcome to the stock market today! The sun is shining on Wall Street, and the major indices are once again approaching all-time highs. It seems that the market is still riding the vaccine wave after a historic FDA approval yesterday. So considering all this, what will the stock market do today?

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

Source: Shutterstock

  • The S&P 500 is up 0.25%
  • The Dow Jones Industrial Average is up 0.15%
  • The Nasdaq Composite is up 0.52%

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

What Will the Stock Market Do Today? Buy Chinese Stocks.

These last few weeks have been touch for Chinese stocks… and for a variety of industries that call China home. First we saw the country crack down on Bitcoin (CCC:BTC-USD) mining and trading, pushing several prominent firms to move elsewhere. Then, we saw Didi (NYSE:DIDI) stumble days after its initial public offering when officials removed its ride-hailing app from stores.

Through regulatory twists and turns, tech, internet, and education companies have become some of the hardest-hit. Government representatives are worried about how large tech and internet firms use customer data. They are also worried about the for-profit education business, which boomed during Covid-19 times.

Investors have certainly seen the impacts of this regulation. Ant Group was forced to delay its public debut, and a few dozen other Chinese companies have shelved their IPO plans. Didi has had to compromise with the government on its use of data, and a handful of other big names like Alibaba (NYSE:BABA) and Tencent (OTCMKTS:TCEHY) are on watch. In the United States, SEC Chair Gary Gensler has issued a warning around the risks of U.S.-listed Chinese stocks.

But this morning, investors are not thinking about the negatives. Instead, Chinese stocks like Alibaba, Tencent, Baidu (NASDAQ:BIDU) and Nio (NYSE:NIO) are gaining. One main driver of the enthusiasm appears to be coming from e-commerce player JD.com (NASDAQ:JD). Despite a difficult regulatory landscape, the company shared it added record users in the past quarter. It also said that it does not anticipate any impacts from the regulatory discussions at play.

Building on this, iconic investor Cathie Wood appears to be diving back into Chinese stocks just a few weeks after trimming her stakes. Through her Ark Invest, Wood bought into JD stock on Monday afternoon. Her vote of confidence appears to be carrying a considerable amount of weight on Tuesday.

Biden Wants Vaccine Mandates

Pfizer (NYSE:PFE) got full approval for its Covid-19 vaccine, and now, the next steps are already underway. President Joe Biden shared that he wants as many private companies as possible to impose vaccine requirements for their employees.

In his comments on Monday afternoon, Biden shared that such measures could help reach more unvaccinated Americans. The thinking is that with full approval from the U.S. Food and Drug Administration, it will be easier for companies to levy vaccine mandates. Additionally, more individuals may now feel comfortable receiving the vaccine.

There are already a handful of publicly traded companies mandating vaccines for some employees. CVS Health (NYSE:CVS) makes the list, as does Delta Air Lines (NYSE:DAL), Ford (NYSE:F) and Lyft (NASDAQ:LYFT).

But more companies could follow in their footsteps after the Pfizer vaccine victory.

This has already created a boom for reopening plays. As we wrote yesterday, AMC Entertainment (NYSE:AMC) gained in hopes of a quick return to movie theaters. Today, Carnival (NYSE:CCL), American Airlines (NASDAQ:AAL) and Caesars Entertainment (NASDAQ:CZR) are other gainers.

Keep a close eye on this story, and for how vaccine mandates relate to the ongoing labor shortage.

What Else We’re Watching

  • Fall is officially here… at least according to Starbucks (NASDAQ:SBUX). Today marked the launch of its beloved seasonal beverages including the Pumpkin Spice Latte and the Pumpkin Cream Cold Brew.
  • Richard Branson continues to embrace the world of special purpose acquisition companies. Yesterday, he confirmed that Virgin Orbit will come public through NextGen Acquisition II (NASDAQ:NGCA).
  • MicroStrategy (NASDAQ:MSTR) is betting big on Bitcoin (CCC:BTC-USD)… still. The company announced that in the third quarter it added another $177 million worth of BTC.
  • Investors are paying close attention to the Federal Reserve this week with tapering talk top of mind. However, they should also consider that this may be the last public speech from Fed Board Chair Jerome Powell. President Joe Biden is expected to make a decision on whether or not to renew his appointment some time around Labor Day.

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

Article printed from InvestorPlace Media, https://investorplace.com/2021/08/what-will-the-stock-market-do-today-aug-24-3-big-stories-to-watch/.

©2023 InvestorPlace Media, LLC