Thursday,
September 21, 2023
Market recap
Dow Jones
34,440.88
-76.85 (-0.22%)
S&P 500
4,402.20
-41.75 (-0.94%)
Nasdaq
13,469.13
-209.06 (-1.53%)
Top Story
$24 billion in federal childcare funding is set to expire at the end of the month
Here’s what the American Rescue Plan Act’s sunset could mean for parents, childcare providers, and the economy as a whole.
US stocks traded lower on Wednesday as investors digested news from the Federal Reserve’s policy update
• The central bank held interest rates flat at a range of 5.25% to 5.5%. This falls in line with market expectations, while pointing to one more likely 25-basis-point increase before year end and suggesting that rates will remain higher for longer.
• The Federal Open Market Committee also updated its economic projections. The update forecast slightly faster GDP growth and a stronger labor market this year and next year compared to their June projections. Fed Chairman Jerome Powell said a “soft landing” for the U.S. economy, where higher rates tame inflation but don’t lead to a recession, was possible.
• The average 30-year fixed-rate mortgage surpassed 7.3% to match a 23-year high. That said, applications to refinance a home jumped 13% compared to the previous week, while applications to purchase a home increased 2%. However, both figures are nearly 30% lower year-over-year.
• The FAA granted approval for delivery drone operators to fly drones beyond visual line of sight. This will likely enhance scalability in the U.S. drone operations of logistics company Zipline, UPS (UPS) subsidiary Flight Forward, and others. This decision positions the U.S. as a potential global leader in drone delivery and paves the way for Zipline to expand its services to millions.
• The marketing platform Klaviyo (KVYO) joined the slew of Wall Street debuts this month, jumping as much as 23% in its first trading day Wednesday. The IPO valued the tech company at more than $9 billion.
What to be on the lookout for today
• Existing home sales for August will be released. In July, this metric dropped 2.2% month-over-month. New jobless claims will come in as well.
• Olive Garden-owner Darden Restaurants (DRI) will release its latest report card. The restaurant conglomerate will likely speak on its recent Ruth Chris’s Steak House acquisition.
Liz Looks at: The Fed’s September Statement
The Federal Reserve left interest rates unchanged this week but suggested that rates will stay higher for longer. This could complicate the central bank’s hopes for a soft landing, characterized by getting inflation under control without pushing the economy into a recession.
Today’s top stories
Even America’s biggest landlords are struggling in this housing market High financing costs and low supply have made it difficult for corporate landlords to justify buying homes. Read more >> The auto industry is road-tripping south — and the unions might not be along for the ride Carmakers are increasingly setting up shop in the South. But the shift could pose a new challenge for the United Auto Workers union. Read more >> How you use your credit card can affect your credit score Your credit card utilization guide shows you how much of your credit you should use, and how credit card utilization affects your credit score and overall financial standing. Read more >>Other news that caught our eye
-
United Nations Secretary-General AntĂłnio Guterres called to end subsidies for fossil fuels around the globe. In 2022, these subsidies topped $7 trillion.
-
WhatsApp added a new in-app shopping feature called Flows, enabling users to book appointments, pick airline seats, and more without leaving the app.
-
Kraft Heinz recalled almost 84,000 individually-wrapped cheese slices due to a potential choking hazard. The food conglomerate stated a technical glitch was causing a thin strip of wrapper to get stuck on pieces of cheese.
-
Walmart just opened its first veterinary and grooming center outside of Atlanta, signaling its plans to expand into pet care.
-
The FDA rejected a needle-free alternative to EpiPens, an epinephrine nasal spray, stressing that more research is needed before approval is granted.
Financial planner tip of the day
“As the famous axiom goes, “buy low, sell high.” A stock market crash may present long-term opportunities to buy stocks at a lower, more attractive share price.”
Brian Walsh, CFP® at SoFi