After several rocky weeks, the markets are trying to find equilibrium; House Dems are preparing another, less expensive coronavirus bill; and demand for new homes is creating a building supply shortage. Here's how the headlines could affect your money.
The major indexes are attempting to stabilize: Thursday closed with the Dow up 0.2%, the S&P up 0.3%, and the Nasdaq up 0.4%, and Friday opened on an even keel. Stocks aim to stave off a fourth week of losses.
This month's tech-driven sell-off is a good reminder to keep your portfolio diversified.
House Democrats are preparing a $2.4 trillion coronavirus relief package, pared down from their original proposed budget of $3 trillion. It would include enhanced unemployment insurance, another round of stimulus checks, Paycheck Protection Program small-business loan funding, and airline aid. The House could vote as soon as next week.
Market analysts hope that a signed, sealed, and delivered stimulus bill will boost markets and revitalize the economy.
Video by Jason Armesto
It's a tricky time to try to buy a home. Construction supplies are running short, thanks to high demand for newly built houses. Existing-home prices are up as well: In August 2020, the median price of an existing home was at $310,600, an 11.4% increase over last year.
New home sales in August were at the highest level in 14 years, so prices might keep going up.
Video by Courney Stith
The stock market often drops slightly in September, a phenomenon known as the September Effect, or the September Slump. Since 1901, the Dow has dipped an average of 0.89% every September. Theories for the phenomenon include a practice among some mutual funds to rejigger their portfolios in September and that investors might sell off after a summer lull.
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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