Why Shopify, PayPal, and MercadoLibre Stocks Rallied on Wednesday
A broad cross-section of stocks charged sharply higher on Wednesday, as Wall Street focused on Treasury yields and foreign government moves to settle unrest in the financial markets.
With that as a backdrop, a number of companies focused on the digital economy outperformed the broader markets. Shares of e-commerce kingpin Shopify (NYSE: SHOP) rose as much as 5.5%, digital payments denizen PayPal (NASDAQ: PYPL) jumped as much as 6.9%, and Latin American e-commerce and fintech leader MercadoLibre (NASDAQ: MELI) surged as much as 8.3%. When the market closed, the stocks were still far into the green, gaining 5%, 6.3%, and 7.5%, respectively. These stocks followed the broader markets higher, as the S&P 500 and the Nasdaq Composite each gained roughly 2%.
There was no company-specific news driving the gains, but shares have been pummeled over the past year, so any good news was a good excuse for fair-weather investors to wade back into the market. Positive developments in the unfolding saga involving the British pound and a spike in U.S. Treasury yields provided the catalyst.
Source Fool.com
