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White House pitches $600 stimulus checks, and DoorDash IPOs: How the headlines could affect your money

The latest Covid-aid proposal from the White House includes $600 stimulus checks.

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The US Capitol is reflected in a standby ambulance on March 27, 2020, in Washington, DC.
Alex Edelman | AFP | Getty Images

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.

Market resumes rally

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.

White House pitches $916 billion aid package with $600 stimulus checks

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.

VIDEO2:2402:24
What is an IPO?

Video by Stephen Parkhurst

What to know about tech IPOs and your portfolio

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.

VIDEO4:5304:53
The difference between public and private, explained with veggie burgers

Video by David Fang

Words you've heard: IPO

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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