Wednesday,
September 20, 2023
Market recap
Dow Jones
34,517.73
-106.57 (-0.31%)
S&P 500
4,443.95
-9.58 (-0.22%)
Nasdaq
13,678.19
-32.05 (-0.23%)
Top Story
How much do you make? The question is moving from taboo to normalcy
New York just became the fourth state to pass a pay transparency law, while half the jobs posted online in August advertised a salary range. For jobseekers, this can make it easier to find the right fit. But there are drawbacks, too.
US stocks fell on Tuesday as the Fedâs two-day policy meeting began
• While investors anticipate no change to interest rates, the tone during Chairman Jerome Powellâs press conference could provide indications of a potential rate hike in November. Either way, the Fed is likely nearing the end of its rate hiking cycle.
• U.S. building permits jumped nearly 7% to a ten month high in August. But permits donât equate to houses; housing starts fell 11.3% between July and August.
• Grocery delivery app Instacart (CART) made its Wall Street debut after pricing its IPO on Monday. Shares jumped as much as 40% in initial trading, and ended up more than 12% at Tuesdayâs close.
What to be on the lookout for today
• Itâs the most important day of the week for investors as the Fed is set to announce its September policy update. The decision whether to raise the federal funds rate will be â in part â based on Augustâs inflation rate, which hit 3.7%, and marked the second straight month of increasing inflation. Even so, no interest rate change is expected at this meeting. Instead, investors will be looking out for the Fedâs updated economic projections.
To buy or to rent your home, that is the question
Homeownership is a goal for many Americans. But whether buying is a financially prudent decision for you depends on a lot of factors. Here is what you should keep in mind when you make your decision.
What does the housing market tell you?
As a prospective buyer, youâre at the mercy of the housing market. The neighborhood or town youâre interested in buying in might have many or only a few homes available for sale, which will affect their listing prices. Other important aspects to keep in mind are your commute, if you donât work from home, and school districts, if you have school-age children. Depending on what the for-sale housing market in your area is like, you might even consider buying land to build a home. But a project of that magnitude comes with other considerations, including material costs and a longer timeline until you can move in.
Renting, on the other hand, allows you some more flexibility: You can pack up and move when your lease is up, and youâre not on the hook for maintenance fees. However, you might have to contend with regular rent increases, not to mention your landlord could decide to sell. Perhaps most importantly: Your monthly rent payments donât contribute to paying down your home loan, something often referred to as âbuilding equityâ.
Find out if buying or renting is a better fit for you with the SoFi buy or rent quiz.
Todayâs top stories
Hereâs why the global economy could hit the brakes in 2024 There are some clouds over the global economic growth forecast for 2024. And there are two major reasons for it. Read more >> EV adoption is running out of charge â literally Major automakers are pouring billions into building electric vehicles â but America's charging landscape might be the real barrier to break through. Read more >> Hereâs the difference between a rollover and traditional IRA Knowing the difference can help you streamline your finances when youâre leaving a job with a 401(k) retirement plan. Read more >>Other news that caught our eye
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The UAW union plans to strike at more auto plants if it cannot reach a deal with the Big Three automakers â Ford, General Motors and Chrysler-parent Stellantis â by Friday.
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A government shutdown could delay the release of key economic data used by the Fed to make policy decisions. This could potentially make it difficult for the central bank to accurately interpret the economy.
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Mexico has overtaken China as the U.S.âs biggest trade partner as the U.S. looks to reduce supply-chain reliance on its geopolitical rival.
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TikTok parent ByteDance launched a new employee tool called MyRTO used to track badge swipes into the office as workers are asked to return.
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Disney said it will increase spending on its parks and cruises to $60 billion over the next decade, almost double its current investment.
Financial planner tip of the day
"With pre-tax contributions to an IRA or 401(k), you pay taxes when you withdraw your money in retirement, but get a tax break now. When you make Roth contributions, you do not get a tax break now, but do not have to pay taxes on the money upon withdrawal."
Brian Walsh, CFPÂź at SoFi