What Did the Stock Market Do Today? 3 Big Stories to Catch Up On.

What Did the Stock Market Do Today? 3 Big Stories to Catch Up On.

Meme cash, fuel costs, SPAC shares, oh my! Another busy day on Wall Street is wrapping up as buyers eye a reopening world. So with all this in thoughts, what did the inventory market do at this time?

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  • The S&P 500 closed decrease by 0.85%
  • The Dow Jones Industrial Average closed decrease by 0.78%
  • The Nasdaq Composite closed decrease by 0.56%

So what all did the inventory market do at this time? Here are a few of the high tales.

What Did the Stock Market Do Today? Talk Crypto Bans.

Bitcoin (CCC:BTC-USD) and its friends have been in a troublesome spot, and that didn’t change at this time. In reality, buyers gained one thing else to fear about following information that China is banning crypto… kind of.

According to a Reuters report, three business teams introduced some adjustments coming to the crypto scene in China. Financial establishments will no longer be able to provide any services relating to crypto transactions. Additionally, officers need shoppers to hear a warning loud and clear. In different phrases, an enormous a part of the China crypto information is that the authorities thinks cryptos are harmful for shoppers, given worth volatility.

Understandably, the information rocked buyers. However, there is a little more to the story.

As many crypto bulls identified, the China crypto information does probably not mirror a brand new stance. The nation has already banned foreign and domestic crypto exchanges in addition to ICO platforms. This new steering targets monetary establishments as an alternative of shoppers. Additionally, bulls took to Twitter to spotlight that customers may hold their crypto holdings in China.

So what’s the backside line? The China crypto information will not be motive for panic, nevertheless it highlights the regulatory pressures in the house. Increased crypto scrutiny in the United States has equally shaken investor confidence, as has speak of crypto bans in Turkey and India. With Bitcoin and altcoins persevering with to develop in mainstream relevance, critics will likely be fast to level to these regulatory threats.

You can learn extra about China banning crypto right here.

Analysts Are Betting on a Big Bull Run in Oil Prices

Oil costs are a prime example of the supply-demand imbalances at play in the market.

A gasoline scarcity is high of thoughts proper now, following the cyber assault on the Colonial Pipeline and the ensuing panic shopping for. Plus, a truck driver scarcity that’s limiting deliveries to fuel stations can be complicating provide. As a outcome, fuel costs simply hit their highest levels since October 2014.

In different phrases, shoppers are beginning to really feel the pinch, however steadiness will not be coming anytime quickly.

In reality, analysts are nonetheless bullish on oil, betting that demand will skyrocket even additional. This comes as Covid-19 reopening strikes entrance and heart, with manufacturing exercise rebounding. Consumers are prepared to journey, heading to the pump for seashore journeys. Plus, airlines are reporting increased bookings and including flights to their schedules. Add in simple financial coverage, and Wall Street sees the good recipe for additional demand development.

So what does this imply for buyers? Over the summer time, anticipate gasoline costs to stay elevated, and for shoppers to really feel the pinch. However, if you’re betting on oil, analysts are in your aspect. Expect crude oil costs to rally much more — maybe so far as $80 per barrel.

At the time of writing, Brent crude is sitting at $68.65.

TPGY Stock Highlights Recent SPAC Woes

Times are powerful proper now for particular objective acquisition firms. Moves by the U.S. Securities and Exchange Commission to overview protected harbor protections and alter warrant accounting necessities have damage pre-merger firms. Post-merger firms have additionally not escaped these blows. Fisker (NYSE:FSR) confirmed it (*3*), and Canoo (NASDAQ:GOEV) now finds itself the topic of investigation.

Broadly, buyers have turn into involved with SPAC valuations and development projections, and the present regulatory panorama will not be serving to.

Today, buyers obtained a transparent take a look at how difficult these SPAC transactions could be, even with out exterior stress. TPG Pace Beneficial (NYSE:TPGY) discovered itself falling, after its latest 8-K showed its proposed merger with EVBox was in danger.

Essentially, TPG Pace is planning to merge with electrical automobile charging agency EVBox. Investors have been anticipating the deal to shut someday in June. However, the nature of this transaction will not be so easy. Parent firm Engie is definitely carving out EVBox as a part of its enterprise, sending the agency public by what is called a carve-out transaction. TPG Pace says that EVBox and Engie are struggling to get their accounting so as, which may drive TPG to delay its merger.

So what’s the backside line? TPG says it has the alternative to postpone the merger till September 2021. However, the greater image highlights the difficult spot SPAC shares are in proper now, and the uncertainty buyers in these growth-oriented names face.

On the date of publication, Sarah Smith didn’t have (both straight or not directly) any positions in the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.

Sarah Smith is the Editor of Today’s Market with InvestorPlace.com. 

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About the Author: Daniel