Markets surge to record highs, President Joseph R. Biden extends moratoriums on evictions and student loan payments, and first-time claims for unemployment were better than expected. Here's how the news could affect your money.
All three indexes closed at record highs Wednesday as President Biden was officially sworn into office. The Dow climbed by 0.8%. Meanwhile, the S&P 500 and Nasdaq rose 1.4% and 2%, respectively — their best Inauguration Day performance since President Ronald Reagan started his second term in 1985.
Stocks continued to climb Thursday morning, rising to new records.
Biden spent part of his first day signing a flurry of executive actions, including several aimed at providing financial relief to Americans.
One of those orders extends the federal moratorium on evictions until March, after they had been set to expire at the end of this month. Another continues the pause on federal student loans until September. Borrowers were expected to restart payments in February.
The initiatives come at time when many Americans could use the help: More than 40 million Americans were in jeopardy of losing their homes without more financial assistance, the Aspen Institute found last year, and a recent Student Debt Crisis poll shows that nearly 80% of respondents with loans don't feel financially secure enough to resume payments until at least June 2021 or later.
Video by Helen Zhao
First-time claims for unemployment insurance totaled 900,000 for last week, according to the Department of Labor. That's better than the 925,000 estimate analysts were predicting and an improvement from last week's revised total of 926,000.
Just over half of the 22 million jobs lost in the pandemic were recovered by the end of 2020, but analysts expect a surge in new job creation and hiring this year as the coronavirus vaccine rolls out and businesses reopen.
Cryptocurrency is a form of digital money that's decentralized and based on blockchain technology. The best-known: bitcoin. A two-day bitcoin sell-off this week contributed to a loss of $100 billion from the broader cryptocurrency market.
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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