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How guaranteed basic income could alleviate the child care burden
One city is testing a unique and obvious solution to solve the child care affordability issue: cash.
US stocks rebounded on Tuesday
• The market bounced back from Monday’s sharp fall
• Overseas, Japanese stocks, which contributed to the dour market sentiment on Monday, bounced back as well. The Nikkei index jumped the most since 2008, one day after registering its steepest decline since 1987.
• The U.S. trade deficit shrank in June for the first time in three months as exports ramped up.
What to be on the lookout for today
• The weekly update to the 30-year mortgage rate.
• It will be a big day for earnings, as CVS, Disney, Hilton, HubSpot, Lyft, Novo Nordisk, Ralph Lauren, Shopify, Sunoco, and Warner Bros. Discovery report.
When stock market volatility freaks you out
Looking at the U.S. stock market over the past few days, you’d be forgiven for getting a little motion sick. Up and down, and round and round, it has been a volatile few days.
What started as turbulence in the tech sector, where semiconductor stocks struggled, and company-specific news weighed on big tech, spread across sectors when worries about the economy entered into the mix. The July jobs report was weaker than expected, causing concern about whether the Federal Reserve’s high interest rate policy of the past years may have overshot the target and cooled the economy too much. In response, the S&P 500, the broadest measure of the U.S. stock market, logged its worst day in nearly two years at the start of this week. Phew!
It can be stressful to watch the market’s day-to-day swings if you’re an investor with a big goal, such as saving for a comfortable retirement. Days that are big on market headlines, like this past Monday, are often the moment when you may feel drawn to check in on your accounts, just to potentially see red arrows if the whole market has turned lower. Checking is one thing, but panicking is another.
If you’re investing for the long-term, it’s key to remember that momentary swings in the market are just that: momentary. Staying invested through volatility, rather than pulling your money out of the market and holding it in cash, can help you reach your financial goals in the long run.
Today’s top stories
How much do gold medallists make?The Olympics can catapult athletes to fame. But can it make them rich too?
Read more >> Are we in a recession? The Sahm Rule says yesThe recession indicator’s creator, however, isn’t so sure.
Read more >> What is the VIX and why should you know it?All you need to know about the Cboe Global Markets Volatility Index, or VIX, which measures implied volatility in the market.
Read more >>Other news that caught our eye
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Uber’s ad revenue surpassed $1 billion last quarter, the goal it set when it launched its ads business two years ago.
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The Biden administration announced $2.2 billion in funding to strengthen the U.S. electrical grid, in order to protect against extreme weather events, accelerate the clean energy transition, and lower costs.
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Disney is upping prices for its streaming subscriptions across Disney+, Hulu, and ESPN+.
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Bloomberg Philanthropies gifted $600 million to four historically Black medical schools, more than doubling the size of three schools’ endowments.
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X plans to close its flagship San Francisco office and open a new one in Palo Alto. CEO Elon Musk blamed the move on the city’s payment processing policies in a post on the social media platform.
Financial planner tip of the day
"If it works with your income, the 50/30/20 budget is one simple method for people starting to reorganize their finances. This budget allocates 50% of your income for essentials, like rent and bills, 30% toward personal day-to-day spending, and 20% for savings or financial goals."
Brian Walsh, CFP® at SoFi