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New House stimulus proposal; tech stocks recover: How today’s headlines could affect your money

Major indexes recover as traders look to the Fed's update; the House Problem Solvers Caucus releases a bipartisan coronavirus relief plan; and consumer spending dips in August.

Speaker of the House Nancy Pelosi (D-CA) speaks during a briefing to the media on Capitol Hill in Washington, September 10, 2020.
Joshua Roberts | Reuters

Tech stocks continue to recover while the House Problem Solvers Caucus has put a new stimulus proposal on the table. Here's how the latest headlines could affect your money. 

Markets look ahead to the Fed announcement

Tech shares dragged the broader market lower last week, but the major indexes have begun to recover. The Nasdaq has risen more than 3% since the start of the week.

The S&P 500 and Dow were both up Wednesday morning as traders look ahead to the Federal Open Market Committee update later in the day. Experts don't expect any change in interest rates. Traders will watch for guidance on the Fed's next steps and its expectations for economic recovery. The news itself could move the market.

Hope for another stimulus bill? 

Republicans and Democrats have been at an impasse for months. Aiming to restart negotiations, the House Problem Solvers Caucus released a bipartisan coronavirus relief plan Tuesday. The $1.5 trillion proposal includes $450 per week in federal unemployment benefits for eight weeks and direct payments to American workers. Experts say it's unclear whether the proposal can gain traction. 

Still, a new stimulus bill of some kind remains a priority. Though the House of Representatives' next recess begins October 2, Speaker Nancy Pelosi told Democrats Tuesday that lawmakers will remain on call until both parties have come to an agreement, according to The Washington Post

VIDEO2:2102:21
How the Fed's interest rate decisions impact you

Video by Stephen Parkhurst 

Retail sales droop in August

U.S. consumer spending may have slowed in August. Core retail sales fell 0.1% after rising 0.9% in July, according to the Commerce Department. This category excludes automobiles, gasoline, building materials, and food services. Overall retail sales increased 0.6% in August.

Extended unemployment benefits ended in July, which economists estimate cut nationwide income by $70 billion in August. That may have meant a lot of people had less money to spend.

Words you may have heard: Nasdaq Composite

The Nasdaq Composite is one of the big three stock market indexes, tracking more than 3,000 stocks. Half of the index comprises tech companies, which led the market's remarkable decade-long growth throughout the 2010s.

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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