Tech sell-off continues, a K-shaped recovery: What today’s news means for your money

A Nasdaq market correction might be helpful, says Ed Yardeni, president of Yardeni research: "I'm actually somewhat comforted by the market taking a break here, a bit of a correction. It's a healthy development."

Exterior views of the Nasdaq in New York City.
Adam Jeffery | CNBC

The tech sell-off continues; the recovery might be K-shaped; and the nation seeks to stave off a government shutdown. Here's how the headlines could affect your money.

Tech continues its sell-off

The tech-heavy Nasdaq just had its worst week since March 20. On Tuesday morning, the tech sell-off continued, putting the index in correction territory. 

Some experts call this long overdue. "The Nasdaq is up something like 70% [since March 23]," Ed Yardeni, president of Yardeni research, told CNBC's "Trading Nation" on Friday. "That's a melt-up. … So I'm actually somewhat comforted by the market taking a break here, a bit of a correction. It's a healthy development."

Economic recovery could look like a K

Economists worry that economic recovery could be K-shaped, meaning that there are two different trend lines: big businesses versus small, and high-earners versus low-earners. "When we talk K, the upper path of the K is clearly financial markets, the lower path is the real economy, and the two are separated," economist Joseph Brusuelas told CNBC.

Some analysts say this is par for the course. "Every business cycle since 1990 has been one where there's been some 'K' characteristics to it," economist Steven Ricchiuto told CNBC.

How to plan for stock market downturns

Video by Stephen Parkhurst

Senate back in session 

The Senate is back in session and the House returns September 14. Before breaking for recess in August, talks had stalled over an additional stimulus package. Now they could resume.

Either way, congressional deadlock over the stimulus won't have to lead to a government shutdown. Treasury Secretary Steven Mnuchin said Sunday that the White House and Congress would fund the government through the beginning of December.

Words you've heard: Market correction

A market correction occurs when a stock, bond, commodity, or index is down 10% or more from its 52-week high. A correction can prevent a given stock or sector from becoming overvalued, and it presents investing opportunities for anyone looking for value stocks.

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. Check out stories on Acorns + CNBC's website Grow to get smarter about your money and find the latest money news every day right here.

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