Stocks ended a wild day slightly down. Inflation speeds up in April. And new stimulus checks may be on the way for Californians. Here's how the news could affect your money.
Stock indexes, led by Big Tech stocks, got off to a rocky start Tuesday morning before making up some ground later. Concerns about rising inflation and high valuations drove the tech-heavy Nasdaq down by as much as 2.2% before investors piled back into leading names such as Amazon and Netflix. The index finished the session down under 0.1%.
The S&P 500 lost 0.9% on the day while the Dow shed 1.4%.
The major indexes moved lower Wednesday.
Data for April shows the biggest year-over-year bump to inflation in nearly a decade, the Labor Department announced Wednesday. The Consumer Price Index — a measure of the change in what consumers pay for a basket of goods — jumped 4.2% from the previous year, the largest increase since September 2008.
Investors typically take a negative view toward rising prices, which diminish portfolio returns and erode the value of retirement savings.
Video by Helen Zhao
Californians may get another round of stimulus checks: Governor Gavin Newsom unveiled a proposal this week to provide stimulus checks and renter assistance. The state, which reported a $75.7 billion budget surplus, is already in the process of sending $600 stimulus payments to families earning under $30,000.
The $100 billion plan calls for $500 checks for families earning less than $75,000 per year.
Investors who buy the dip purchase shares of an asset after it has fallen in price. If you think that a stock or fund has long-term potential, the thinking goes, buying when the shares go down allows you to own more of that asset at a cheaper price.
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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