Markets are mixed as lawmakers haggle over stimulus, Airbnb and DoorDash saw blockbuster IPOs, and nearly 80% of student loan borrowers won't be ready to restart payments when federal forbearance runs out. Here's how the headlines could affect your money.
The Dow and S&P 500 both closed slightly lower Thursday, while the Nasdaq Composite inched up about half a percent. All three major indexes were down Friday morning.
Lawmakers continue to try to strike a new stimulus deal in December, and time is running out. Democrats are pushing a $908 billion bipartisan compromise bill, but Majority Leader Mitch McConnell has rejected that proposal.
Airbnb soared more than 112% in its debut on the Nasdaq Thursday, while food-delivery service DoorDash surged over 85% on the New York Stock Exchange Wednesday. Airbnb's $86.5 billion market cap outpaces that of hotel chains Marriott and Hilton. DoorDash, as of Thursday's close, hit a $59 billion market cap.
As exciting as IPOs can seem, experts recommend you focus on planning for the long term and diversifying your portfolio.
Video by Stepehen Parkhurst
The forbearance period for federal loans scheduled to end in December was extended through January 31, 2021, offering a reprieve to borrowers during the pandemic. But according to a Student Debt Crisis poll, that won't be enough time. Borrowers owe a total of $1.6 trillion and the average monthly payment is nearly $400.
A striking 77% of respondents say they won't feel financially secure enough to resume payments until at least June 2021. While experts typically advise against dragging out forbearance due to accruing interest, new zero-interest rules make it easier to take a break, as long as you're allowed.
Because of the pandemic, the Department of Education said borrowers would have interest rates automatically set to 0% starting retroactively on March 13. That rate is in effect through at least January 31, 2021, and means you could put extra cash toward your principal.
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.
More from Grow: