It’s time for a Monday market update as we answer the question “why are stocks down today?”
Several sectors are experiencing declines today that are an extension of falls from late last week. This is due to the Federal Reserve announcing plans to increase interest rates as it weighs out ways to combat increasing inflation.
Now, it’s time to talk about the stocks being affected by this news.
Why Are Stocks Down Today?
Let’s start off by highlighting tech stocks. These took a major beating last week as investors sold off shares due to increasing interest rate plans. That negative movement continues today with many Nasdaq stocks slipping lower.
The negative movement surrounding the stock market today also includes electric vehicle (EV) stocks. Several companies, such as Tesla (NASDAQ:TSLA), Xpeng (NYSE:XPEV), and Nikola (NASDAQ:NKLA) were heading lower this morning.
Another sector in the stock market with shares falling today includes sports betting companies. That’s seen BetRivers (NYSE:RSI), Caesars (NASDAQ:CZR), DraftKings (NASDAQ:DKNG), and FanDuel (OTCMKTS:PDYPY) all falling today.
Of course, we can’t just blame all of why stocks are down today on the Federal Reserve’s plans to increase interest rates. There’s also the Covid-19 Omicron variant to consider. While not as deadly as other variants, fears of additional lockdowns are shaking investors’ foundations. That’s affecting the market at confidence drops among traders and selloffs continue.
Investors looking for more stock market news to dive into on Monday are in the right place!
InvestorPlace offers daily coverage of the stock market and today is no different. That has us offering the latest stock stories, such as what has Irhythm Technologies (NASDAQ:IRTC) stock rising higher, how to get free at-home Covid tests, as well as PayPal (NASDAQ:PYPL) planning to release its own stablecoin. You can learn more about these topics by checking out the following links below!
More Stock Market News for Monday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.