Friday,
December 3, 2021
Market recap
Dow Jones
34,641.70
+619.66 (+1.82%)
S&P 500
4,577.19
+64.15 (+1.42%)
Nasdaq
15,381.32
+127.27 (+0.83%)
Top Story
US Stocks Climb as Investors Continue to Analyze Omicron’s Impact
US stocks climbed Thursday. Markets have been volatile this week as investors have received mixed signals about how the Omicron variant of COVID-19 could impact public health and the global economy. The first case of the new strain of the virus was detected in the US on Wednesday. This news, along with an announcement from Fed Chair Jerome Powell regarding the central bank’s tapering plans, spurred a significant selloff.
But markets regained strength yesterday despite concerns about the variant. The Biden administration has put new travel regulations in place in an effort to curb the spread of the new variant. Passengers coming into the US must now receive a negative COVID-19 test within 24 hours of when they depart for the country, even if they are fully vaccinated. Additionally, the mask mandate for passengers on domestic flights and on public transportation has been extended until March 18, 2022.
Meanwhile, initial jobless claims data was released yesterday. The labor market is returning to its pre-pandemic strength. Initial claims totaled 222,000, which was lower than the 240,000 claims economists expected. Continuing claims fell below 2 million for the first time since the beginning of the pandemic. As the labor market gains momentum, investors are wondering about how this will impact the Federal Reserve’s decisions about reining in asset purchases and raising interest rates.
Exploring Student Loan Refinancing Before the End of Federal Student Loan Relief
In March 2020, as the COVID-19 pandemic struck, the White House ordered the suspension of payments, interest, and collections on most federally held student loans. After a break of nearly two years, borrowers will restart federal student loan payments. Well before 2022 arrives, it would be smart to have a strategy for repayment.
If you refinance your student loans with a private lender, a new, private loan—ideally with a lower rate—will pay off your original loans. Refinancing can be a good choice for working graduates who have higher-interest Direct Unsubsidized Loans, Graduate PLUS loans, or private loans, since interest rates are at near-historic lows.
One important thing to note is that refinancing federal student loans means the loans are no longer subject to federal benefits like income-driven repayment, Public Service Loan Forgiveness, or federal forbearance.
Comparing options, plugging in numbers, and weighing different scenarios based on your current financial picture and your goals may be helpful in assessing whether refinancing is a good option for you.
Now’s a great time to consider refinancing and it only takes two minutes to view your rate online. Refinance before 1/31/22 and get a bonus up to $1,000 deposited in SoFi Checking and Savings®1. Check your rate on student loan refinancing today.
A Few Headlines That Should Be on Your Radar
International Travel Poised to Take Hit Due to Omicron The Omicron variant of COVID-19 is threatening recovery for international travel as the US, the UK, and other countries take new action to prevent it from spreading. This will hurt the likes of United Airlines (UAL), American Airlines (AAL), and Delta Air Lines (DAL), which were just emerging from a slump which has lasted nearly two years. Read more >> iPhone 13 Demand Slows Toward End of Year Apple (AAPL) is seeing demand for its lineup of iPhone 13 devices slow, as supply issues prompt some consumers to give up on buying one. A lack of components had prompted Apple to cut its production target by 10 million devices earlier this year. The company had hoped to make up for the shortfall in 2022, but now demand is suffering. As a result, the iPhone maker is warning component suppliers that its orders may be lower. Read more >> Friday Fundings: Via, CyCognito, Life House On-demand vehicle startup Via,cybersecurity platform CyCognito, and hotel management company Life House raised fresh funding this week. Investors have high hopes for these companies. Read more >> Should You Refinance Your Federal Student Loans? Clearly, knowing if—and when—to refinance is not a simple decision. These answers to some frequently asked questions about federal student loan refinancing may help you decide what’s right for you. Read more >>What to Be on the Lookout for Today
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The Labor Department will publish the unemployment rate, nonfarm payrolls, and average hourly earnings for November.
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Big Lots will report its latest results. Margins for the Columbus, Ohio-based retailer have been tight recently due to supply-chain disruptions and inflation. However, the company has been working to strengthen its ecommerce operations, which may have given its bottom line a boost during the last quarter.
Financial Planner Tip of the Day
“Lenders want to see accounts maintained in good standing for a long time. When debt accounts are closed, though, that history ends, and eventually closed accounts drop off the credit report entirely. A credit history looks better when it has a solid number of accounts in good standing that have been open for a long time.”
Brian Walsh, CFP® at SoFi