The Second Day of Correction on Wall Street

After a week marked by new all-time highs, the major US indices decided to take a pause. Investors are looking for new directions after first-quarter earnings reports from banks and waiting for the results of the technology companies. 

One of the significant declines was Tesla, which plummeted by 3.40%. 

The main wall street indices dropped from their record highs. The S&P 500 slipped by 0.68% or 28.32 points, to 4,134.94 units. Meanwhile, the Dow Jones lost 0.75% or 256.33 points, to 33,821.30 units.

Economists believe that since the market has taken a big jump to the upside, it needs to rest a bit. For now, it is just small profit-taking as traders await the results of the big names in technology on Wall Street. 

Investors turned to defensive sectors, which are considered relatively safe in times of economic uncertainty. They shifted to real estate, utilities, consumer staples, and healthcare sectors. Meanwhile, financial and energy stocks fell sharply.

Shares of airline and cruise ship operators such as JetBlue Airways, American Airlines, Norwegian Cruise Line, and Carnival Corp were hit last year during the shutdowns. Thanks to the hopes of reopening, they rose slightly. However, during yesterday’s trading, they dropped by around 5%.

JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc, and Wells Fargo & Co led the declines for financial companies. According to Dick Bove, principal research analyst at Odeon Capital Group, the reason why this happened is analysts having reassessed their earnings reports.

Coinbase, the bridge between Wall Street and bitcoin

Coinbase, the cryptocurrency trading platform, debuted this week on the Nasdaq generating massive buzz. It is the first cryptocurrency-based company treading on NYSE. 

Before its debut on Wednesday, the shares were priced at $250. However, on their first day on the stock market, they were worth more than $429. Still, after the initial euphoria, Coinbase moderated its stock market advance and closed the first session with a price of $328. The capitalization of the value amounted to 65,000 million dollars before going public. Now, it exceeds $100,000 million.