The S&P and Nasdaq reach new record highs, the latest Covid-aid proposal includes $600 stimulus checks, and tech companies will IPO this week. Here's how the headlines could affect your money.
Although the major indexes started Tuesday in negative territory, they rebounded later in the day as the U.K. began rolling out Pfizer's vaccine. The S&P and Nasdaq both reached new closing highs, and the Dow closed just below its record from Friday.
Wednesday, the Dow and S&P both opened higher, building on Tuesday's momentum.
Late Tuesday, Treasury Secretary Steven Mnuchin made a $916 billion Covid stimulus offer to House Speaker Nancy Pelosi. The White House plan would include $600 checks for most Americans. But it eliminates the $300 in federal weekly unemployment benefits that was part of earlier negotiations.
Another stimulus package is far from a done deal. Lawmakers are still negotiating, and there are several components — including liability protections and state and local aid — that remain sticking points.
Even so, it's smart to consider how you could best use a second stimulus check. Financial guru Suze Orman recommends shoring up your "financial foundation" rather than using it to pay down debt. "Save, save, save," she says.
Video by Stephen Parkhurst
Food delivery company DoorDash will make its debut on the New York Stock Exchange Wednesday. Vacation rental site Airbnb is expected to follow with its IPO Thursday.
But newly public companies can be a volatile addition to your portfolio, and most such investments lose investors money after five years, a UBS analysis found. Keep your focus on maintaining a broadly diversified portfolio of low-cost, long-term investments.
Video by David Fang
An initial public offering, or IPO, refers to the moment a private company begins selling stock to the general public. After that, it's considered a public company, with shares tracked and traded on a major stock 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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