The Week in Review
US stocks climbed Monday as investors continued to react to comments from Federal Reserve Chairman Jerome Powell. Powell emphasized that the Fed does not plan to increase interest rates anytime soon, and also spoke about how he is still confident that inflation trends will be short-lived.
US stocks hovered near record highs Tuesday, the last trading day of August. Stocks ticked upward for most of the month of August, thanks to strong second-quarter earnings reports, easy monetary policies, and low trading volumes. The Federal Reserve has announced it will begin scaling back its bond-buying later this year, but does not have plans to increase interest rates from close to zero.
Heading into the fall, investors face uncertainty surrounding the Delta variant of COVID-19. Data released Tuesday showed that consumer confidence in the US in August fell to its lowest level since February, largely due to concerns about the Delta variant and the possibility of restrictions on businesses in the fall and winter.
Zooming out, September started earlier this week, which is the last month of the third quarter. Stocks climbed gradually over the summer. Wall Street was optimistic that as the economy regained strength, corporate profits would increase. Heading into this month investors will be focused on several events which could move markets.
For more economic news and how it affects your money, visit the SoFi app.
This Week’s Top Stories
The COVID-19 pandemic has created financial difficulties for millions of households. Even before COVID-19 struck, consumers were struggling with financial insecurity. Heading into the pandemic roughly one third of American households were not able to handle an unexpected $2,000 bill while slightly more than one third found it hard to cover their monthly expenses.
Last week, Federal Reserve Chairman Jerome Powell spoke about the central bank’s monetary policy plans in the upcoming months. This was part of the Fed’s annual Jackson Hole conference, which was held virtually. The Fed has implemented a historic response to pandemic-related economic downturn. Now, the bank is making plans to scale back these measures and help the economy regain normalcy.
Every week, SoFi’s Head of Investment Strategy shares her economic and market insights in order to help empower readers to take a more active role in their financial futures. This week, see what Liz has to say about seasonality.
Deep Dives from SoFi Learn
How much wealth do you really have? Explore ways to calculate net worth and why you should.
Decimate high interest rate credit card and other debt with these helpful tips and proven techniques from around the web. Read How to Plan the Ultimate Debt Payoff Strategy at SoFi Learn.
Looking for new IPO stocks in 2021? Here are some ways to target and track upcoming IPOs.
The Benefits of Automating Your Finances
Automating finances can not only be a smart money move, it could also help alleviate some of the stress surrounding payment deadlines. Some benefits of finance automation include helping avoid late fees and sticking to your monthly budget.
Plus, payment history makes up 35% of your credit score, so automating your finances could be a good way to stay on top of things. Set up SoFi Relay to track your spending, monitor your credit score, get payment reminders, and more.