Thursday Market Update: Why Are Stocks Down Today?

Investors looking into why the market is falling on Thursday need look no further than our stock update below.

Image of stock numbers and city lights.Source: Shutterstock

There are actually a few reasons behind the general dip in the market today. To start off with, the stock market has been seeing slight decreases throughout the week as investors are wary about a recovering economy.

The idea that investors wouldn’t be happy about the economy recovering may seem strange but it does make sense. Several e-commerce companies saw shares take a sharp dive yesterday as investors fear a reopening of physical businesses. That negative movement is continuing today for many of those stocks, including Etsy (NASDAQ:ETSY), Shopify (NYSE:SHOP) and Fiverr International (NYSE:FVRR).

The oncoming end of the novel coronavirus pandemic isn’t just worrying e-commerce investors. It’s also causing concern among investors afraid of rising inflation rates. As the economy returns to normal those rates could rise higher.

Adding to that, there’s the upcoming $1.9 trillion stimulus package that Congress is set to debate over. It seeks to send out checks of $1.400 to qualifying citizens. There are concerns that the amount is too high and will further add to inflation. However, the $15 minimum wage part of the bill was already killed off.

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Finally, with an increase in inflation comes rising bond yields. We already saw this last month when bond yields got a boost on coronavirus vaccine news. At that time, the market experienced a similar retreat when investors got spooked about the rising rates.

And there’s the Thursday market update for why stocks are down today. The S&P 500 and Dow are currently up slightly as of this writing but experienced a sharp falling in the early morning hours.

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

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