The "recovery trade" took a breather on Tuesday after a setback on the COVID vaccination front.
Both the U.S. Food and Drug Administration and the Centers for Disease Control and Prevention urged a pause in injections of Johnson & Johnson's (JNJ, -1.3%) single-dose coronavirus vaccine so that the incidence of a blood clotting disorder in six Americans who have received the shot could be studied.
Also Tuesday, the U.S. Bureau of Labor Statistics reported that U.S. consumer prices jumped by 2.6% in March, up from 1.7% in February.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"This morning's U.S. CPI data came in a touch above expectations but were no worse than feared," says Michael Reinking, NYSE senior market strategist. "This, coupled with the potential to push out the vaccination process, has put a bid in Treasury markets."
"That bid strengthened following a strong $24 billion 30-year auction at 1 p.m., with the auction pricing at 2.32% below the 2.338% when issued market. The 10-year yield is down 4.5 (basis points) to 1.63%."
This easing in yields, combined with virus concerns, helped boost technology and tech-adjacent stocks – Nvidia (NVDA, +3.1%), Apple (AAPL, +2.4%) and Tesla (TSLA, +8.6%) contributed to a 1.1% gain in the Nasdaq Composite, to 13,996 – as well as utility stocks (+1.2%), which led all sectors Tuesday.
The S&P 500 gained 0.3% to set a new record close at 4,141, and the Dow Jones Industrial Average finished slightly lower, off 0.2% to 33,677.
Other action in the stock market today:
- The small-cap Russell 2000 slipped 0.2% to 2,228.
- U.S. crude oil futures improved by 0.6%, settling at $59.70 per barrel.
- Gold futures declined 0.9% to $1,747.60 per ounce.
- The CBOE Volatility Index (VIX) declined 1.5% to 16.65.
- Bitcoin prices hit an all-time high of $63,707 ahead of the Coinbase direct listing Wednesday. Bitcoin cooled to $63,023 by the afternoon, but that still represented a 4.9% improvement on Monday's price. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
Attack of the SPACs
One of Tuesday's biggest market headlines centered on a company located 9,000 miles away – but it also continues a growing story here at home.
Grab Holdings, a multinational ride-hailing, food-delivery and payments-solutions technology firm based in Singapore, announced it would go public via a $39.6 billion deal that would see it merge with California-based special purpose acquisition company Altimeter Growth (AGC, +9.9%) – the largest such "SPAC" deal in history.
That extends what has been an explosive 2021 for SPACs – a method of bringing private companies public without them having to go directly through the initial public offering (IPO) process. After raising $13.6 billion in 2019, SPAC deals generated an incredible $73 billion in 2020 … only to be eclipsed in just the first three months of 2021, when nearly $88 billion was raised.
Investors need to exercise caution, as this newly red-hot corner of the market is garnering increasing scrutiny from regulators. But those looking for a potential growth booster should take a look at our new "SPAC list": a regularly updated list of these acquisition-minded companies that are currently on the hunt for merger targets.
Kyle Woodley was long NVDA as of this writing.
-
Is Trump's Tax Plan Speeding Up the Looming Social Security Funding Crisis?Social Security Social Security's combined retirement funds are running out of cash, and its insolvency date is expected to occur in less than a decade.
-
How to Keep Your Work Friends After You RetireWork friendships can boost teamwork, lift your spirits, and make the job more fun. But when you retire, these friendships can fade. Here's a look at why that happens and what you can do about it.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
President Trump Makes Markets Move Again: Stock Market TodayThe White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Stocks Struggle to Start Nvidia Week: Stock Market TodayAnother important week for the stock market starts on a risk-off note.
-
Nvidia Earnings: Live Updates and Commentary August 2025Nvidia has reported expectations-beating top- and bottom-line results again, and market participants are already parsing the AI bellwether's numbers.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
-
Stocks Slip Ahead of July CPI Report: Stock Market TodayThe latest inflation updates roll in this week and Wall Street is watching to see how much of an impact tariffs are having on cost pressures.
