Stock Market News: Why Luckin Coffee and Aurora Cannabis Plunged Wednesday Morning
The stock market got its mojo back on Wednesday morning, with investors growing more excited about the future. Some market participants believe that reopening businesses will bring a strong recovery without further assistance, while others expect lawmakers in Washington to add further economic stimulus measures to support ailing companies. Both views supported bullish moves for major market benchmarks. Just before 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 392 points to 24,599. The S&P 500 (SNPINDEX: ^GSPC) picked up 50 points to 2,973, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 169 points to 9,354.
Yet even as most stocks enjoyed the updraft, a few hard-hit companies were left out. Luckin Coffee (NASDAQ: LK) saw its shares trade for the first time in more than a month, and a rush of selling pressure showed the challenges that the Chinese coffee company faces. Meanwhile, in the marijuana stock sector, Aurora Cannabis (NYSE: ACB) gave back some of its recent gains on fears that its rebound could prove short-lived.
Shares of Luckin Coffee plunged 35% Wednesday morning. Following extensive bad news, investors got their first chance to trade the stock since Nasdaq suspended trading in early April -- but they might not have much time.
Source Fool.com
