What Did the Stock Market Do? Jan. 7, 2021

Welcome to the stock market today! For all of the latest news, you can follow along in real time with InvestorPlace.

Latest Updates:


Stocks Close Out Thursday Higher

[Thursday, January 7, 4:51 pm]
Contributed by Sarah Smith

  • The S&P 500 closed higher by 1.48%
  • The Dow Jones Industrial Average closed higher by 0.69%
  • The Nasdaq Composite closed higher by 2.56%
  • The Russell 2000 closed higher by 1.88%

Bitcoin Crosses $40,000

[Thursday, January 7, 2:08 pm]
Contributed by Sarah Smith

Bitcoin (CCC:BTC) has taken out yet another milestone, crossing $40,000 for the first time ever.

Check out our coverage of bitcoin today here.


Social Capital Hedosophia to Take SoFi Public

[Thursday, January 7, 2:04 pm]
Contributed by Sarah Smith

Chamath Palihapitiya announced Thursday that the latest special purpose acquisition company from Social Capital Hedosophia, which trades as IPOE stock, would take fintech startup SoFi public. Investors are already chasing up IPOE stock on the news.

So what do you need to know? The story here is that Palihapitiya sees doom in store for legacy banks, particularly in the wake of the financial crisis of 2007-08. Now, consumers are shifting their behaviors and expectations in alignment with fintech startups. For instance, consumers are looking for one-stop shops for their financial products. They are also looking for lower-cost, transparent options for lending, investing, banking and everything else.

For more, read the InvestorPlace.com brief on the SoFi SPAC merger here.


Midday Update: Dow Adds 200+ Points

[Thursday, January 7, 1:35 pm]
Contributed by Sarah Smith

  • The S&P 500 is up 1.41%
  • The Dow Jones Industrial Average is up 0.71%
  • The Nasdaq Composite is up 2.39%
  • The Russell 2000 is up 1.57%

Bitcoin Crosses $38,000. How Should You Proceed?

[Thursday, January 7, 10:08 am]
Contributed by Sarah Smith

Bitcoin (CCC:BTC) continues to charge ahead. This weekend, the leading cryptocurrency set an all-time high above $34,000. Yesterday, spurred on by hopes of a Democratic victory in Georgia runoff races, bulls bid crypto prices up above $35,000 for the first time ever. And yet again today, the rally continues. This time bitcoin has set an all-time high above $38,000, dancing close to expert price predictions near $40,000, including one from InvestorPlace analyst Matt McCall.

So where do you go from here? Many of the macroeconomic catalysts behind bitcoin continue to hold steady, including growing institutional support and fears of inflation. However, as InvestorPlace Markets Analyst Tom Yeung highlighted, there is reason for caution. A reversal in the economy or a loss of investor confidence could halt the astronomical moves in bitcoin.

For more, read the InvestorPlace.com brief on bitcoin here.


3 Big Stories to Watch

[Thursday, January 7, 10:01 am]
Contributed by Sarah Smith

  1. Chaos in Washington. There is no denying that the tumultuous events that unfolded yesterday at the U.S. Capitol are top of mind. Although the stock market remains largely unaffected (which you can read more about here), it is still important for investors to stay informed. I have been following this live blog from the New York Times. Investors should also know that Congress reconvened on Wednesday, ultimately voting to confirm the victory of President-elect Joe Biden.
  2. Rally in Cryptos. Following the chaos in Washington, the confirmed victory of Biden and wins by Democrats Raphael Warnock and Jon Ossoff in Georgia, cryptocurrencies have been racing higher. This should be unsurprising given the trends we have seen in cryptos, where bulls view them as a hedge against inflation. What should you be watching this morning? Bitcoin (CCC:BTC) set another all-time high above $38,000, after setting a record yesterday above $35,000. Other cryptocurrencies including XRP (CCC:XRP) are also up big.
  3. Unemployment. Are things turning around for the unemployment situation? This morning, the U.S. Department of Labor released its weekly report to some level of surprise. Investors learned that for the previous week, 787,000 Americans filed for initial jobless benefits. While this remains in a historically high range, it does come in lower than expectations for 800,000 claims. It also marks the second consecutive week of sub-800,000 reports. With the confirmation of Biden and the potential for further Covid-19 stimulus, there is hope that these weekly figures will drop even more.

Major Indices Open Thursday Higher

[Thursday, January 7, 9:33 am]
Contributed by Sarah Smith

  • The S&P 500 opened higher by 0.76%
  • The Dow Jones Industrial Average opened higher by 0.49%
  • The Nasdaq Composite opened higher by 1.14%
  • The Russell 2000 opened higher by 3.98%

Stock Market Futures Remain Steadily Positive

[Thursday, January 7, 9:11 am]
Contributed by Sarah Smith

  • S&P 500 futures are up 0.49%
  • Dow Jones Industrial Average futures are up 0.31%
  • Nasdaq Composite futures are up 0.77%
  • Russell 2000 futures are up 0.28%
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