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Markets end January down, and GOP senators float their own Covid relief bill: How the headlines can affect your money

Plus, how to know when it's time to replace your old mattress.

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Senator Susan Collins, a Republican from Maine, wears a protective mask as she arrives to the Senate Republican leadership vote in the Russell Senate Office Building in Washington, D.C., U.S., on Tuesday, Nov. 10, 2020.
Stefani Reynolds | Bloomberg | Getty Images

Markets close January with their worst week since October, and GOP senators counter President Joe Biden's $1.9 trillion stimulus package with a more limited and affordable proposal of their own. Plus, a tip that could help you sleep better. Here's how the headlines could affect your money.

Markets end January on a low note

All three major indexes fell Friday, capping their worst week since October. The Dow closed below 30,000 for the first time since December 14. For January, the Dow dropped 2%, the S&P fell 1%, and the Nasdaq rose 1.4%.

Markets were up Monday morning, though, to start February.

Republican senators propose stimulus compromise

Biden will meet with a group of 10 Republican senators Monday to discuss a less expensive Covid stimulus package. The $618 billion proposal, whose supporters include Sens. Susan Collins, Mitt Romney, and Lisa Murkowski, would cost less than a third of the package Biden has proposed.

While the GOP draft includes another round of relief checks, those would be capped at $1,000, as opposed to the $1,400 in Biden's plan. The checks would start phasing out for individuals making $40,000 a year or more (the most recent round of government payouts started to phase out for those who earned $75,000 a year).

VIDEO1:5901:59
Suze Orman on how to use a second stimulus check

Video by Helen Zhao

When a new mattress may be in order

Over 1 in 4 Americans report experiencing more trouble falling and staying asleep since the pandemic, according to a Consumer Reports survey. A new mattress could help. If your mattress is more than 8 to 10 years old, it may be time for a replacement, and the upcoming Presidents' Day holiday is one of the best times of the year to shop for discounts, experts say.

Words you've heard: #silversqueeze

If you thought the Reddit trading saga was over, think again. The r/wallstreetbets forum on Reddit had multiple active threads dedicated to silver on Sunday night, and the phrase #silversqueeze was also trending on Twitter. 

It's a variation on a theme: Last week, traders who had previously shorted stocks of GameStop had to reverse course when the company's share price upended expectations and started rising, so the idea now is to drive up the price of silver, because banks typically hold more short positions on the precious metal.

Silver futures were up more than 10% Monday. That's the biggest surge since at least 2013.

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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