Stocks moved off lows midday Wednesday, as the Dow Jones Industrial Average pared a 174-point loss that followed a Fed official’s hawkish comments.
The Nasdaq shed 0.9%, the S&P 500 fell 0.4% and the Dow Jones industrials gave up 0.3% in the stock market today. Small caps tracked by the Russell 2000 lagged, down 1.1%. Volume was mixed, higher on the NYSE but lower on the Nasdaq, vs. the same time Tuesday.
The major indexes tumbled early Wednesday, after St. Louis Federal Reserve Bank President James Bullard said in a Financial Times interview that tapering should begin this year.
He noted high demand for workers and more job openings than unemployed workers, which could contribute to a strong labor market heading into 2022. “The big picture is that the taper will get going this year and will end sometime by the first half of next year,” Bullard said.
U.S. Stock Market Today Overview
Last Update: 12:08 PM ET 9/8/2021
The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased.
But cases are rapidly rising again and mask mandates are returning in some states as the delta variant spreads.
Cumulative Covid-19 cases worldwide are approaching 223 million, with more than 4.6 million deaths, according to Worldometer. In the U.S., cases have topped 41 million with over 669,000 deaths.
Growth Stocks To Watch
On the IBD 50, Maravai LifeSciences (MRVI) sank 7% in above-average volume. Late Tuesday, the San Diego, Calif,-based biotech announced a proposed secondary offering of 20 million shares. The November 2020 new issue remains well extended from a 45.89 buy point of a short cup base. Analysts expect Maravai to turn its first annual profit this year.
Global-e Online (GLBE) tumbled 6% in heavy trade, extending Tuesday’s nearly 7% drop. Also on Tuesday, the Israel-based e-commerce platform said certain shareholders plan to sell 12 million shares in a secondary offering. The stock is up nearly 180% from its May IPO price of 25 a share.
Upstart rallied as Piper Sandler maintained an overweight rating on the AI lending platform and boosted its price target to 300 from 191. Shares are on track for a fourth straight advance and are five weeks into an eight-week hold rule.
PayPal (PYPL) reversed from an early rise to a 2% loss. It gave up all of Tuesday’s gain and then some. It’s now testing its 50-day moving average as the stock works on a flat base with a 310.26 buy point. Shares are about 6% away from the entry.
Early Wednesday, PayPal said it’s acquiring Japanese “buy now, pay later” consumer financing startup Paidy for about $2.7 billion.
Dow Jones Movers
Apple, which marked a new high of 157.26 on Tuesday, is nearly extended from a 148 trendline buy point. The buy range tops out at 155.40. It also found support at the 10-week line. The iPhone maker said Tuesday it will hold its fall product launch event on Sept. 14. Analysts expect Apple to reveal its latest iPhone handsets and Apple Watch smartwatches at the event.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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