Markets are up on coronavirus stimulus hopes as the White House boosts its stimulus offer to $1.9 trillion. Meanwhile, for the first time in 15 years, ATM fees are down. Here's how the headlines could affect your money.
Markets were up Tuesday as investors were cautiously optimistic about coronavirus stimulus bill talks. The Dow and S&P saw their second consecutive day of gains, while the Nasdaq ended a five-day losing streak. All three indexes ended the day about 4% shy of their all-time highs and continued to rise Wednesday morning.
So much for the October Effect, or the belief that October is a bad month for markets. It's a good reminder that buying and selling based on the calendar isn't usually a good long-term strategy.
White House chief of staff Mark Meadows told CNBC that Democrats and the White House have made "good progress" on stimulus talks but that they have "a ways to go." He hopes to see "some kind of agreement before the weekend."
The White House upped its offer Tuesday to $1.9 trillion, edging closer to the $2.2 trillion the House approved earlier this month. So far, all parties agree that the new package would include individual stimulus checks and enhanced unemployment benefits.
For the first time in 15 years, ATM fees haven't gone up, according to Bankrate. In fact, they fell: from an average $4.72 last year to $4.64. Pandemic-related fee freezes helped, but you can often avoid ATM fees altogether by switching banks.
The October Effect refers to the belief that October is a cursed month for markets. Some of the market's worst disasters occurred in October, like Black Tuesday in 1929 and Black Monday in 1987. But overall, from 1960-2019, the change in the S&P between September to October was a nearly break-even 0.096%.
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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