Markets, seized by the concept of rising interest rates and higher inflation, fell steeply in early trading Tuesday, before rallying back in afternoon trading. Two of the three major indices ended up finishing the day higher, with only the tech-heavy Nasdaq finishing lower, shedding 0.5%.
Although Wall Street has been heavily focused on rising interest rates over the last week, Federal Reserve Chair Jerome Powell emphasized again on Tuesday that the central bank would continue to adopt a dovish stance, noting that inflation is still below target levels.
Historically, rates remain at unusually low levels.
The Dow Jones Industrial Average rose 15 points, or less than 0.1%, to finish at 31,537.
CCIV falls as investors sell the news. As if stocks soaring to record highs amid a pandemic weren’t enough evidence that stocks don’t always act intuitively, Churchill Capital IV (ticker: CCIV) plunged more than 38% on Tuesday. This came after the news that the blank-check company’s long-rumored deal to merge with electric vehicle company Lucid Motors would indeed come to fruition.
It’s a classic case of the old Wall Street saying “buy the rumor, sell the news.”
AMC jumps on reopening of NYC movie theaters. AMC Entertainment ( AMC), the largest theater chain in the U.S., has been on a dramatic ride in 2021. One of the central names in the Reddit stocks mania and subsequent Robinhood controversy, AMC stock soared in late January to highs of about $20 per share. Shares of the troubled business, however, couldn’t keep up with the hype and quickly came crashing back down to less than $6 per share.
Tuesday was a nice rebound day for shareholders though, who celebrated the news that AMC would be reopening all 13 of its New York City movie theaters on March 5 by bidding shares up more than 17%.
Bitcoin plunges. Swiftly impacted by the risk-off mentality that permeated much of the day’s trading activity, Bitcoin prices plunged Tuesday, dipping to around the $45,000 mark after hitting all-time highs around $58,000 in recent days.
Tesla ( TSLA) CEO Elon Musk has been blamed for a portion of the sell-off, after tweeting over the weekend that the price of the cryptocurrency seemed high.
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