Thursday,
June 13, 2024
Market recap
Dow Jones
38,712.21
-35.21 (-0.09%)
S&P 500
5,421.03
+45.71 (+0.85%)
Nasdaq
17,608.44
+264.89 (+1.53%)
Top Story
What does the “lipstick index” tell us about the economy?
Beauty sales have correlated with economic downturns in the past. What is this unconventional metric saying now?
US stocks were mixed on Wednesday as traders digested a lot of new information
• Still, the Nasdaq Composite and S&P 500 continued to push to new record highs for the third day in a row, with the latter finishing above 5,400 points for the first time ever.
• Inflation increased less than expected in May at 3.3% year-over-year. Core inflation, which strips out food and energy costs, also rose less than expected at 3.4% annually.
• The 30-year mortgage rate declined to 7.02% last week, while mortgage applications surged nearly 16%.
What to be on the lookout for today
• Wholesale inflation for May. We’ll also get the weekly update to unemployment claims.
• In earnings, Adobe will report.
Only one rate cut ahead! Breaking down the Fed update
It was a big day for economic data between the May consumer price inflation report and the Federal Reserve’s latest interest rate decision. The Fed kept rates unchanged, and changed the tune of its economic projections, forecasting just one interest rate cut this year.
There has been progress on inflation, and the Fed is happy about that, but it wants to see more, said Fed Chair Jerome Powell.
“The Fed left its message in a gray area that didn’t bring us any additional clarity on how long this rate pause may last,” said SoFi head of investment strategy Liz Young Thomas in her analysis of the June Fed statement.
Even so, the markets chose to focus on Wednesday’s wins: A cooler-than-expected inflation report, and rate cuts still being in the cards… eventually.
Today’s top stories
Diving into the creator economyYouTube star Airrack appeared on SoFi’s YouTube show Richer Live$ to talk about what it takes to be a creator, and what he does with his money.
Read more >> Abercrombie & Fitch is partying like it’s 1999After being a fixture of the early 2000s, the retailer fell from grace. But the apparel brand has turned around with its stock soaring more than 100% this year. What changed?
Read more >> SoFi’s mid-year investment strategy outlookWe’re half-way through the year, so SoFi head of investment strategy Liz Young Thomas looks at what the rest of the year might bring.
Read more >>Other news that caught our eye
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GameStop raised more than $2 billion by selling 75 million shares amid a surge in interest in the company driven by “meme trader” Roaring Kitty.
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Americans have collectively saved $1 billion in electric vehicle tax credits since the start of the year, according to the Treasury Department.
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With hybrid work schedules as the new normal, U.S. office buildings are getting sold at massive discounts of up to 70%.
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More than 15,000 Amazon delivery drivers in California, Massachusetts, and Illinois filed claims against Amazon for allegedly misclassifying them as independent contractors instead of employees.
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Elon Musk dropped his lawsuit against OpenAI, which had accused the business of abandoning its original nonprofit mission and asked it to pay back profits.
Financial planner tip of the day
“The sooner you can start investing, the quicker you can start taking advantage of compounding interest, which can accelerate your ability to save. Compound interest is the return you earn on your returns, which can help your earnings grow exponentially over time.”
Brian Walsh, CFP® at SoFi