Stocks trade lower. Bitcoin hits a 14-week low. Some states are pulling back on unemployment benefits early. And teens get a new way to invest. Here's how the news could affect your money.
Stocks indexes fell Tuesday as a late-day swoon wiped out gains logged earlier in the session. The S&P 500 slid 0.9%, while the Dow surrendered 0.8%, and the Nasdaq shed 0.6%. The main culprit behind the negative investor sentiment: a worse-than-expected decline in housing starts, which fell 9.5% year over year in April, the Commerce Department said on Tuesday.
Bitcoin prices plunged 30% Wednesday morning to near $30,000. The digital currency's sell-off began last week after Tesla CEO Elon Musk said his company would no longer accept bitcoin as payment for its vehicles. The total value of the cryptocurrency market fell more than $300 billion following the announcement.
Tuesday brought more bad news as China banned financial institutions and payment companies from providing services related to cryptocurrency transactions.
Video by Helen Zhao
Citing labor shortages, governors of at least 16 states plan to opt out of pandemic-era federal unemployment programs, forgoing about $11 billion in extra $300-a-week payments for out-of-work residents. Although the American Rescue Plan extended benefits through Labor Day, these states will end their participation anywhere from June 12 to July 10, depending on the state.
Certain workers, such as the long-term unemployed and gig workers, will lose aid entirely.
Video by Helen Zhao
Young investors have flocked to the stock market over the past year, but until now, had to be at least 18 to start their own account. That changed Tuesday when Fidelity announced that it's launching a savings and investing account for 13- to 17-year-olds. The no-fee "Youth" account, which the brokerage is touting as a learning tool for young investors, allows teens to trade most U.S. stocks, along with ETFs and mutual funds.
Kids must have a parent with a Fidelity account and can only open an account with parental say-so. Parents can monitor trading activity in the Youth account online. But unlike a custodial account, these new accounts are owned and controlled solely by the teens.
Custodial accounts are savings or investing accounts administered by an adult on behalf of a minor. Though the child owns the account in these scenarios, the custodian controls the money decisions until the child reaches 18, 19, or 21, depending on state laws.
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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