Stocks Drop for a 3rd Day

Coinbase dives 6% amid crypto sell-off
By Newser Editors and Wire Services
Posted May 19, 2021 3:40 PM CDT
Stocks Drop for a 3rd Day
A man walks by a banner for Squarespace at the New York Stock Exchange, Wednesday, May 19, 2021.   (AP Photo/Mark Lennihan)

Stocks closed broadly lower on Wall Street Wednesday, extending the market’s downturn to a third day. The price of Bitcoin and other cryptocurrencies dropped sharply in a surge of selling. Bitcoin’s price was down 7% to just over $40,000, according to the crypto news site Coindesk, having swung in a huge range of as low as $30,202 and as high as $43,621 over the past day. The stock of the digital currency exchange operator Coinbase, whose website went down briefly in the morning, fell almost 6% and is down sharply from its IPO just over a month ago, the AP reports. The S&P 500 fell 12.15 points, or 0.3%, to 4,115.68. The Dow Jones Industrial Average fell 164.62 points, or 0.5%, to 33,896.04. The Nasdaq fell 3.90 points, or less than 0.1%, to 13,299.74, The Nasdaq fell 3.90 points, or less than 0.1%, to 13,299.74.

Bank stocks were among the biggest decliners. Goldman Sachs fell 2.5% and Wells Fargo fell 2.2%. A range of retailers and other companies that rely directly on consumer spending were also posting sharp drops. Home Depot slid 1.3%, Gap fell 3.7%, and L Brands dropped 4.5%. Target gained 5.5% after reporting strong results. Investors also continue to be focused on whether rising inflation will be temporary or whether it will endure. Prices are rising for everything from gasoline to food as the economy recovers from its more than year-long malaise. The Federal Reserve expects that rising inflation will be temporary and related to the recovering economy, but investors are still uncertain and have been more cautious.

(More stock market stories.)

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