Markets stable after unrest at the Capitol, two Democratic victories in the Georgia Senate runoff clear a path for $2,000 stimulus checks, and jobless claims were slightly better than expected. Here's how the headlines could affect your money.
The Dow and S&P closed higher Wednesday, with the Dow climbing more than 437 points to close at a record 30,829, as investors eyed the crucial Senate runoff elections in Georgia. The Nasdaq closed slightly lower.
Stocks retreated slightly later in the day, however, as rioters stormed the Capitol. The indexes were up Thursday morning, following President Donald Trump's overnight commitment to an "orderly transition" of power to the incoming Biden administration.
NBC News projects that Georgia Democrats Jon Ossoff and Reverend Raphael Warnock have won their respective Senate runoff contests against Republican opponents David Perdue and Kelly Loeffler. The victories will give Democrats control of the Senate (now split 50-50 between parties) since Vice President-elect Kamala Harris holds the tie-breaking vote.
Experts say this could clear a path for $2,000 stimulus checks, a proposal that outgoing Senate Majority Leader Mitch McConnell previously rejected.
President-elect Joe Biden, who is expected to push for additional funds after being sworn in on January 20, said at a campaign event in Atlanta this week: "If you send Jon [Ossoff] and the reverend [Raphael Warnock] to Washington, those $2,000 checks will go out the door, restoring hope and decency for so many people who are struggling right now."
Video by Helen Zhao
The number of Americans who filed for unemployment was slightly better than analysts predicted, according to the Department of Labor. First-time claims for unemployment benefits totaled 787,000 for the week ended January 2. That's down from 790,000 reported a week earlier and better than the 815,000 expected.
As part of the new $900 billion Covid relief package, mixed earners in some states will be eligible for an additional $100 on top of the extra $300 weekly federal enhancement. Mixed earners have multiple taxable income streams but make the bulk of their pay through 1099 or self-employment work and receive lower benefits based on their W-2s.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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