News You Can Use

Biden transition begins, Dow hits 30,000: Here’s how the headlines could affect your money

The Dow broke 30,000 for the first time, setting a new intraday high.

U.S. President-elect Joe Biden announces his national security nominees and appointees at his transition headquarters in Wilmington, Delaware, November 24, 2020.
Joshua Roberts | Reuters

Markets are up as Biden officially starts the transition process, and home prices are soaring. Here's how the headlines could affect your money.

Dow hits 30,000

All three major indexes were up at the closing bell on Monday, as President-elect Joe Biden's transition began and the AstraZeneca and Oxford University vaccine also showed promise. The rally continued Tuesday morning: The Dow broke 30,000 for the first time, setting a new intraday high.

The Biden transition begins

More than two weeks after the presidential election was called by news organizations, General Services Administration Chief Emily Murphy announced that the Trump administration is making resources available to the Biden team. That includes $7 million in federal funding.

Biden has been announcing Cabinet picks, including Janet Yellen, the former Federal Reserve chair, as his Treasury secretary. Economists expect the pragmatic Yellen, who would be the first woman to serve in the position, would focus on helping the economy recover from the pandemic. 

What is a bubble, and why do they pop?

Video by David Fang

Home prices spike

Home prices are soaring, thanks to low mortgage rates and increased demand. Prices rose 7% in September compared to last year, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. It's the largest gain since September 2014.

In some cities, over 40% of homes are selling above asking price, according to a recent Grow analysis of Zillow data. But if you're in the market for a home, don't let these reports scare you off: In most cases, the final selling price is still within 10% of the original listing.

Words you've heard: Bubble

In financial terms, a bubble refers to a fast increase in an asset's prices, at a clip that exceeds its intrinsic value. That's often followed by a quick deflation. Although home prices are rising quickly, experts say the U.S. is not currently experiencing a housing bubble. 

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:

acorns+cnbcacorns cnbc

Join Acorns


About Us

Learn More

Follow Us

All investments involve risk, including loss of principal. The contents presented herein are provided for general investment education and informational purposes only and do not constitute an offer to sell or a solicitation to buy any specific securities or engage in any particular investment strategy. Acorns is not engaged in rendering any tax, legal, or accounting advice. Please consult with a qualified professional for this type of advice.

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results. Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts. It is not possible to invest directly in an index.

Advisory services offered by Acorns Advisers, LLC (“Acorns Advisers”), an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Brokerage and custody services are provided to clients of Acorns Advisers by Acorns Securities, LLC (“Acorns Securities”), a broker-dealer registered with the SEC and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Acorns Pay, LLC (“Acorns Pay”) manages Acorns’s demand deposit and other banking products in partnership with Lincoln Savings Bank, a bank chartered under the laws of Iowa and member FDIC. Acorns Advisers, Acorns Securities, and Acorns Pay are subsidiaries of Acorns Grow Incorporated (collectively “Acorns”). “Acorns,” the Acorns logo and “Invest the Change” are registered trademarks of Acorns Grow Incorporated. Copyright © 2019 Acorns and/or its affiliates.

NBCUniversal and Comcast Ventures are investors in Acorns Grow Incorporated.