Why These 2 Stocks Got Hit Out of the Gate Thursday
The stock market bounced back early Thursday, recovering a portion of the steep losses from late Wednesday. Investors appear to be trying to come to grips with the Federal Reserve's adamant stance in fighting inflation, even if it means raising interest rates to levels that could have detrimental effects on the economic picture. Shortly after the open, major stock indexes were higher, with the Nasdaq Composite (NASDAQINDEX: ^IXIC) climbing more than 1.25%.
However, there were some companies that didn't manage to participate in the rally. Shares of Coinbase Global (NASDAQ: COIN) and Chewy (NYSE: CHWY) fell to begin the session, and shareholders need to understand what's happening with these businesses and what motivated the declines in their stock prices.
Shares of Coinbase Global fell 16% early Thursday morning. Shareholders weren't happy to see that the company faces a new threat from the U.S. Securities and Exchange Commission (SEC) that could bring about something that many investors have feared for quite a while.
Source Fool.com
