The market is taking a beating on Thursday and that has investors wondering why the stocks are down today?
It looks like the recovering economy is likely behind why stocks are down today. This comes as more people continue to return to normal living with restrictions put in place for the novel coronavirus pandemic loosening.
That may come as a surprise to some as a strengthening economy would typically mean an increase in stock prices. However, some of the biggest tech companies were profiting from the increased business during the pandemic.
For example, shares of e-commerce companies, such as Amazon (NASDAQ:AMZN), Shopify (NYSE:SHOP), and Wayfair (NYSE:W) are all seeing shares of their stock fall today. With customers no longer needing to stay inside and order online, these companies will likely see a decrease in business.
Of course, an e-commerce dip isn’t the only reason behind why stocks are down today. Energy companies are also contributing to the fall with many seeing share prices drop alongside oil prices. That includes Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), and Occidental Petroleum (NYSE:OXY).
Another factor affecting the stock market today is interest rates. The treasury yield fell yesterday from 1.61% to 1.6%. A drop in the treasuring yield can have a major effect on the stock market. That’s due to its influence on interest rates for loans and bonds, reports the Associated Press.
Here’s a quick breakdown of how some stocks are performing today.
- Amazon — AMZN stock is down 1.4%.
- Shopify — SHOP stock is down 3.6%.
- Wayfair — W stock is down 2.1%.
- Exxon Mobil — XOM stock is down 2%.
- Chevron — CVX stock is down 1.3%.
- Occidental Petroleum — OXY stock is down 3.8%.
There are plenty of other stocks that are seeing major movement on Thursday.
That includes companies that aren’t seeing shares of their stock fall alongside the rest of the market. Members of that group include Reddit favorite GameStop (NYSE:GME), biotech company Cellect Biotechnology (NASDAQ:APOP), and SPAC Jaws Spitfire Acquisition (NYSE:SPFR). Investors can learn more about these below.
Stocks Heading Higher Today
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.