Thursday,
March 23, 2023
Market recap
Dow Jones
32,030.11
-530.49 (-1.63%)
S&P 500
3,936.97
-65.90 (-1.65%)
Nasdaq
11,669.96
-190.15 (-1.60%)
Top Story
Fed raises rates 25 bps and markets close lower, but long-term implications are hazy.
The quarter-point hike was expected, mostly, but Chairman Powell is walking a bit of a tightrope. SoFi’s Head of Investment Strategy weighs in.
US stocks fell Wednesday as the Federal Reserve confirmed a 25-basis-point interest rate hike.
• The Fed’s quarter-point hike was unanimous and the terminal rate projection remained unchanged at 5.1%, suggesting the hiking cycle may be coming to an end. In Fed Chairman Jerome Powell’s speech, he underscored the Fed’s commitment to quelling inflation, including reducing the size of its balance sheet.
• GameStop saw its shares soar nearly 50% after a positive earnings surprise. With further plans to cut costs, the retailer reported a profit of $48.2 million, or $0.16 cents per share, for Q4 of 2022.
What to be on the lookout for today
• Wall Street will get reports for jobless claims and new home sales. Jobless claims fell to 192,000 for the week ended March 11, well below market expectations. Unemployment numbers remain near record lows, signaling a still-tight labor market.
• Accenture (ACN) and General Mills (GIS) will report earnings. Notably, the Cheerios owner recently raised its forecasts and expects full-year profit growth between 7% and 8%.
SoFi Checking and Savings now offers access to FDIC insurance coverage up to $2M
We're proud to announce that over the coming days, all SoFi Checking and Savings members can increase their Federal Deposit Insurance Corporation (FDIC) insurance coverage from $250K to $2M through the SoFi FDIC Insurance Network. There is no fee to boost coverage and members will still earn up to 4.00% APY.
This comes after recent news of instability in the banking sector. We know that the last few weeks have been unnerving for many. At SoFi, protecting our members’ money is our number one priority, and increasing FDIC insurance is the latest way we are providing extra peace of mind for our members.
When you open and deposit money in a bank account, the FDIC will insure your funds up to $250,000 in the rare event that your bank fails. But at SoFi, we’re taking security a few steps further.
Get more information about the SoFi FDIC Insurance Network of banks and read our FAQ.
Today’s top stories
“Hi, can I get a double cheeseburger, small fries, and 480 volts of electricity please?” Fast food and convenience stores are looking to step up and satisfy EV owners' cravings. See which franchises are adding “EV charging” to the menu. Read more >> Walmart+ just added another streaming service to its bundle. Walmart+ subscribers can now try SiriusXM for free. The new bundle offers a choice of services, but it’s not available for long. We’ve got all the details. Read more >> What is the federal funds rate? And why are federal interest rate decisions so important? The Federal Reserve uses its interest rate policy to set borrowing costs and to manage the economy. See how changes to this rate affect your wallet. Read more >>Not-so-breaking news
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Starbucks (SBUX) is bringing its olive oil-infused line of drinks, called Oleato, to the United States. Early reviews of the new drink have been largely negative.
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Panera is testing Amazon’s (AMZN) pay-by-palm technology, Amazon One, at two restaurants in St. Louis. Considering Panera has more than 2,000 locations, this could represent a large expansion opportunity for the payment system.
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Now that Delta (DAL) has reached a deal with its pilots, airlines like Southwest (LUV) and United (UAL) face pressure to offer a comparable or better deal to their pilots. This could result in increased pay for pilots, but higher flight prices for travelers.
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GameStop (GME) just posted its first quarterly profit in two years after successfully trimming costs. The video game retailer has not offered guidance for 2023.
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Stellantis (STLA), parent company of Chrysler and Dodge has stated it will stop producing gas-powered versions of the Dodge Challenger, Charger, and Chrysler 300 by the end of the year. The automaker will redesign its factories to focus on producing electric vehicles.
Financial planner tip of the day
“There are studies that show that people who write their goals down greatly improve the chances that they’ll succeed at those goals. You may find it valuable (and fun) to take this idea a step further and create a vision board or draw out your goals.”
Brian Walsh, CFP® at SoFi