Markets rose during Q3; jobless claims are lower than expected; and Mnuchin and Pelosi are still working on a stimulus agreement. Here's how today's news could affect your money.
Despite a rough September, the major indexes all closed the third quarter in positive territory. The S&P 500 rose 8.5% while the Dow was up 7.6% and the Nasdaq 11%. The strong quarterly figures are a good reminder not to overreact when the market has a bad day or even a bad month.
Moving into October, markets were up slightly Thursday morning. Crucially, the Nasdaq 100 and tech stocks were up — and that's the sector that had dragged down markets last month.
Video by David Fang
Another good omen for October: The Labor Department on Thursday reported 837,000 new filings for unemployment benefits for last week. This is a decline from the week before and fewer filings than economists expected.
Investors will be watching for the September jobs report Friday as an indicator of economic recovery.
Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will try again Thursday to reach a deal on coronavirus stimulus. Mnuchin offered a $1.6 trillion proposal Wednesday, which is up from the previous $1.3 trillion plan.
The proposal includes a $400 increase on weekly unemployment benefits, and Mnuchin told Fox Business on Wednesday any deal would also provide another round of $1,200 stimulus checks.
The House, which had aimed to pass a $2.2 trillion Democratic bill Wednesday night, delayed the vote until at least Thursday to allow more negotiation time.
The Nasdaq 100 is one of the three major market indexes, the other two being the S&P 500 and the Dow. According to the Nasdaq website, the Nasdaq 100 "includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization." When people talk about the Nasdaq rising or falling, they are referring to the Nasdaq 100 index.
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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