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

8 May 2021

in XRP

Reading Time: 4 mins read

What a busy day in the stock market. Investors were mostly focused on the Johnson & Johnson (NYSE:JNJ) vaccine news, and paying close attention to the crypto market. One big initial public offering tomorrow has Wall Street on watch. So what else did the stock market do today?

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To start, the major indices ended the day split. The S&P 500 gained 0.33%, while the Dow Jones Industrial Average shed 0.2%. The Nasdaq Composite also gained on Tuesday, adding 1.05%.

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So what did the stock market do today? Here are the top three stories.

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What Did the Stock Market Do Today? Talk Cryptos.

Coinbase starts trading tomorrow, and Wall Street simply cannot wait to dive into the Coinbase IPO.

MoffettNathanson came in with a $600 price target on Tuesday morning, sparking hopes that the cryptocurrency exchange will deliver for investors. The Nasdaq Exchange has set the COIN stock listing reference price at $250, similarly sparking first-day hopes. Although analysts are quick to warn that Coinbase will come with risks, and that it will move alongside the cryptos on its platform, tomorrow seems like the perfect time for such a Coinbase IPO.

With that in mind, investors have also been diving into cryptocurrencies. Bitcoin (CCC:BTC-USD) hit an all-time high above $63,000, and Ethereum (CCC:ETH-USD) set an all-time high of its own. Dogecoin (CCC:DOGE-USD) had crypto bulls cheering after crossing the 9-cent mark, and XRP (CCC:XRP-USD) was gaining on Ripple lawsuit optimism.

So with just a few hours until the Coinbase IPO, what else should investors know? As Noelle Acheson wrote for CoinDesk, the structure of the offering is worth watching. That is because Coinbase is coming public through a direct listing, as opposed to a traditional initial public offering. The company will not raise cash through the process, and theoretically, the direct listing could be more volatile.

But most importantly, Acheson says that a direct listing is the perfect fit for a crypto debut. That is because unlike in a traditional IPO, there is no pre-established price from investment bankers. For some investors, this could make the Coinbase IPO feel more transparent — and in line with the open-access values of cryptocurrencies.

Here is what you need to know about the Coinbase IPO now.

But What About a Bubble?

The start of this week has highlighted everything that is going right in the cryptocurrency world. Mainstream support for digital currencies is growing, regulators are weighing exchange-traded fund applications and the Coinbase IPO promises to deliver.

However, professional investors are growing uneasy when it comes to Bitcoin.

A new article from CNBC highlights that in a survey of 200 professionals, 148 reported that they believe the leading cryptocurrency is currently in a bubble. In other words, 74% of survey respondents are eyeing what they see as a Bitcoin bubble. Plus, as InvestorPlace contributor Chris MacDonald highlighted, legendary investors like Warren Buffett and Charlie Munger continue to bash BTC, comparing it to rat poison and turds.

What does this mean for investors now? Perhaps it is not surprising that old-school folks like Buffett and Munger do not appreciate the recent meteoric gains in the cryptocurrency space. However, as MacDonald writes, it is always wise to know what the critics are saying. As you get hyped for the Coinbase IPO, make sure to stay aware of all sides of the story.

The Microsoft-Nuance Deal Is Red Hot

InvestorPlace Markets Analyst Joanna Makris has a clear message: Microsoft (NASDAQ:MSFT) is not just for boomers.

In fact, following the announcement that the tech giant would acquire Nuance Communications (NASDAQ:NUAN), Makris thinks it is time investors start to pay attention. Microsoft has the balance sheet to transform, and with the artificial intelligence firm rolled into its business, it is adding to its growth potential. The next step could include beating Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) at what they do best.

What should investors know? First, Microsoft made a $10 billion bid for the Discord platform, which Makris saw as a business-savvy move. Now, it is bringing Nuance Communications into the fold. Nuance specializes in speech recognition through artificial intelligence. Although it has strong healthcare associations, Makris sees it as so much more than that. She pictures Microsoft using it to empower business conversations and roll out reminder offerings. It could also polish the Microsoft office suite.

As you are looking for some of the best growth stocks to buy this year, make sure old-school names like Microsoft are not far from mind. You can read more about the Microsoft-Nuance deal here.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.