Sep 29, 2022 (Penny Stocks via COMTEX) -- Why The Stock Market Is Down Today
But wait, the stock market crash is over. At least, that is what some retail traders thought after yesterday's broad-sector bounce led by tech. Waking up to the stock market today painted a much different picture. Even with this as the case, in this article, we're looking at penny stocks to watch that are actually trading much higher and far outpacing the bearish market trends on bullish momentum.
So what changed? Why is the stock market down today? The S&P 500, Nasdaq, Dow, and even the Russell 2000 dipped after early morning economic data signaled we haven't begun to reach max pain yet. Jobs data was the flavor of the day, and initial jobless claims came in better than expected. Claims fell to the lowest levels since April. Continuing jobless claims were also lower than expected. Wall Street analysts anticipated 1.388 million, but Thursday's data came in at 1.347 million.
Jobs data has been the sticking point for many who argue that even though we met the technical definition of a recession, we're not really in one because of the jobs market. In addition, investors have looked to the jobs report as a possible sign that the Fed's monetary policy is beginning to work out.
In the September FOMC press conference , Fed Chair Jerome Powell explained that job openings and quits are good indicators of the labor market. He also explained, "We have always understood that restoring price stability while achieving a relatively modest increase in unemployment and a soft landing would be very challenging."
What Does A Stock Market Crash Mean For Penny Stocks?
If you're not confident trading options or shorting stocks, the stock market crash hasn't offered many opportunities for the average trader to make money in the stock market this year. That is unless you know how to be nimble amid this wild volatility. Penny stocks are one of the ways that traders have achieved this goal, and it comes with plenty of risks. But if you look at stocks like Apple (NASDAQ: AAPL ) or Amazon (NASDAQ: AMZN ), they've been down in the dumps most of the year.
Are there penny stocks to watch during the stock market crash? The short answer is yes, and a few have gained some attention today for different reasons.
Penny Stoks To Watch
PolyPid Ltd. /zigman2/quotes/205859802/composite PYPD +2.72%
Smaller biotech penny stocks are gaining traction in the stock market today. Even with the stock market crashing, companies like PolyPid are heading higher. Earlier this quarter, PYPD stock imploded after news that its Phase 3 SHIELD results didn't meet their primary endpoint. The company was studying its D-PLEX100 for preventing surgical site infections in abdominal surgery. However, last week, the company announced the peer-reviewed publication of its Phase 2 trial results for D-PLEX100, which helped boost shares.
CEO Dikla Czaczkes Akselbrad explained, "The results of this trial were the basis of the Breakthrough Therapy Designation for D-PLEX100 granted by the U.S. Food and Drug Administration (FDA) and a precursor to the Company's SHIELD I Phase 3 trial that concluded earlier this month. PolyPid is further evaluating the collective results of SHIELD I and the Phase 2 study and intends to discuss the clinical outcomes and next steps for D-PLEX100 for the prevention of SSIs in abdominal surgery with the FDA as well as the EU (European Union) regulatory authorities in Q1 2023."
On the back of this week's European Medicines Agency nod for submitting a marketing authorization application, PYPD stock gained some footing. Shares bounced back to highs of nearly $1.40.
MindMed Inc. /zigman2/quotes/204960205/lastsale MNMD +0.36%