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TikTok and WeChat blocked; market struggling; bond yields up: Here's how the headlines could affect your money

Tech sell-off still hurts; bond yields are up; and TikTok and WeChat are poised to be banned: Here's how the headlines could affect your money.

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ByteDance Ltd.'s TikTok app is displayed in the App Store on a smartphone in an arranged photograph taken in Arlington, Virginia, on Monday, Aug. 3, 2020.
Andrew Harrer | Bloomberg | Getty Images

The market still struggles to recover from a two-week tech sell-off; bond yields up; and TikTok and WeChat will be blocked. Here's how the headlines could affect your money.

Tech pulls the markets lower again

The major indexes opened Friday poised to snap a two-week losing streak and post their first weekly gain for September. But by midday, the market reversed course due to continued struggles amid big technology companies.

Bond yields up ahead of Fed speeches

U.S. Treasury bond yields — the interest you would earn from a purchased bond — rose Friday morning ahead of planned speeches from regional Federal Reserves. Higher rates could make bonds more attractive to investors.

Uncertain economic times, such as those brought on by the coronavirus pandemic, tend to make people flock to "safer" investment vehicles like bonds. Since March, rising demand has largely driven bond prices up and interest rates down. 

Generally, experts recommend that people in their 20s, 30s, and 40s keep about 10%-20% of their investments in bonds and the rest in stocks.

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Trump announces ban of WeChat from US apps

The Trump administration announced Friday that the U.S. will soon start blocking downloads of the Chinese social media apps TikTok and WeChat. The ban comes as a blow to Oracle, which was just announced as TikTok's "trusted technology partner." 

TikTok reportedly has 100 million U.S. users. WeChat reportedly has 19 million, who have been able to use the app to transfer funds and make payments.

Words you've heard: Treasury bonds

Treasury bonds are government-issued financial instruments that traditionally have a 30-year term and fixed interest rates. In May, the Treasury made the emergency measure of issuing 20-year bonds to raise money in light of the government's pandemic relief-related expenditures. Governments raise money by selling bonds to the public. When you buy a bond, you become a creditor of the government, and the government is in your debt — with interest. 

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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