Wednesday,
May 29, 2024
Market recap
Dow Jones
38,852.86
-216.73 (-0.55%)
S&P 500
5,306.04
+1.32 (+0.02%)
Nasdaq
17,019.88
+99.09 (+0.59%)
Top Story
All about AI
AI is the theme of the moment, whether you look at the stock market, politics, or at companies’ investment plans. But is it overdone? Here’s why the craze may be far from over.
The Nasdaq Composite briefly breached 17,000 points for the first time ever Tuesday
• The tech-heavy index’s rise was boosted by a near 7% gain from NVIDIA, which continues to be fueled by AI momentum.
• In housing news, home prices increased 7.4% year-over-year in March, according to the Case-Shiller 20-city home price index. The Federal Housing Finance Agency’s House Price Index showed prices rose 6.6% between the first quarters of 2023 and 2024, reaching an all-time high.
What to be on the lookout for today
• The weekly update to the 30-year mortgage rate.
• In earnings, it’s a big day for retail, as reports are due from Abercrombie & Fitch, American Eagle, and Dick’s Sporting Goods, as well as Chewy, HP, Salesforce, and U-Haul.
Balancing loan payments and treating yourself to some fun
Sticking to a budget is key when you have student loan debt. But while it’s important to stay on top of your loan payments and follow through on your financial plans, having a little fun here and there can also be very good for you.
The best way to know how much “fun money” you might be able to spend is to define your goals when it comes to your loans. How much do you owe? List out all your loans detailing their monthly payments and due dates, the principal and interest rates, and whether it’s a private or federal loan.
Balancing act
Be intentional. Sticking to a budget takes discipline, so when it comes time to spend your fun money, make sure it’s on something that will bring you joy.
Create a workable budget. Budgets are going to look different depending on your financial situation. The key is knowing where your money is going and creating a plan that you can stick with. The 50/30/20 budget suggests allocating 50% of your monthly income to essential expenses, like housing, food and minimum payments on any loans; 30% on wants, like eating out and travel; and 20% to savings and additional debt payments. The 10% rule suggests earmarking 10% of your net income for fun.
Set realistic goals. The journey to becoming debt free may be long. There may be bumps and times of having to cut back in your discretionary spending to cover other expenses. Setting goals and tracking your progress can help you stay motivated.
Today’s top stories
Do you know the latest econ buzzword?Bifurcation is economists’ latest favorite term to describe several unusual divergences in the U.S. economy.
Read more >> Are middle managers an endangered species?Middle managers have been hit hard by recent layoffs, and this generation is most affected by this trend.
Read more >> What small business borrowers need to knowIf you’re starting your own business and need financing to support your venture, start by learning the key terms you might encounter when getting a business loan.
Read more >>Other news that caught our eye
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Other big AI news included OpenAI forming a safety committee as it trains its next model, and Elon Musk’s xAI raising another $6 billion, for a total valuation of $24 billion.
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Porsche unveiled a new hybrid version of its 911 sports car, starting at $164,900.
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A new rule from the SEC went into effect today, requiring investors in U.S. securities to settle their transactions within one business day after the trade (T+1) rather than two.
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The dog that inspired the Doge meme and cryptocurrency Dogecoin has died at 18 years old.
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In other car news, Toyota announced several next-generation engines that are lighter, more compact, and compatible with alternative fuels like e-fuels and biofuels.
Financial planner tip of the day
"While buying low and selling high is a good strategy in theory, timing the market does not work in practice. Rather than trying, focus on recurring contributions that utilize dollar cost averaging."
Brian Walsh, CFP® at SoFi