Tuesday,
September 17, 2024
Market recap
Dow Jones
41,622.08
+228.30 (+0.55%)
S&P 500
5,633.09
+7.07 (+0.13%)
Nasdaq
17,592.13
-91.85 (-0.52%)
Top Story
These workers are driving US economic growth
One American demographic has had an outsized impact on the nation’s economy. Can you guess which one?
US stocks finished mixed on Monday
• The Dow Jones Industrial Average rose to a new record high, while declines in Apple stock weighed on the Nasdaq Composite.
What to be on the lookout for today
• Retail sales for August.
• We’ll also get business inventories and the NAHB’s housing market index for September, and the Federal Reserve is kicking off its two-day policy meeting in Washington, D.C.
Why you should care about what the Federal Reserve does
What goes up, must come down, as they say. This week that relates to interest rates.
The Federal Reserve is kicking off its September meeting today, which is expected to lead to the first interest rate cut in more than four years. The decision will be announced Wednesday afternoon.
At the start of the pandemic, the Fed slashed rates to zero to support the economy. It worked, and the recovery was strong and fast. But the price we paid was high inflation. The Fed then raised interest rates to help get inflation back down. But since last summer, rates have been unchanged at a relatively high rate.
But why does this matter? The Fed’s key interest rate, the federal funds rate, determines borrowing costs for banks and sets the tone for interest rates from mortgages to government bonds.
The Federal Reserve and you
Will mortgage rates fall? While the Federal Reserve doesn’t directly set mortgage rates, the anticipation of a rate cut this month has already helped mortgage rates come down, and they could fall further.
Will your savings be impacted? Elevated interest rates have been helpful for savers, who have gotten higher annual percentage yields on their savings. With rates set lower by the Fed, rates for savers could come down too.
Today’s top stories
Why even millionaires are renting right nowThe percentage of high earners who rent just hit the highest level since the mid-2000s.
Read more >> These shows put the “Gold” in “Golden Age of Television”Several popular TV shows are driving millions of dollars in merchandise sales.
Read more >> How to decode a real estate listingNavigating real estate lingo, especially as a first-time homebuyer, can feel like learning a new language. We’re here to help.
Read more >>Other news that caught our eye
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Amazon and Target both unveiled their October sales events Prime Big Deal Days and Circle Week, with the latter running from October 6-12.
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Changes are coming for Spectrum customers: Parent company Charter Communications announced new subscription bundles, pricing transparency, internet speeds, and more as it tries to “be a better service operator.”
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Federal judges heard arguments in the TikTok lawsuit that is seeking to block a law that would ban the app for American users if ByteDance does not divest its U.S. assets by January 19.
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Disney-owned channels are back on DirecTV after the two companies resolved the contract dispute that left subscribers without access to ABC, ESPN, and more for roughly two weeks.
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Home Depot will pay $2 million to settle a claim from a California court that the retailer charged customers more than the advertised price at checkout.
Financial planner tip of the day
“While saving an emergency fund is one of many competing financial priorities, having a cushion to catch you when you fall can prevent a minor calamity from spiraling into lasting debt. The toughest part may be getting started and staying motivated. Just remember, you walk 10 miles by walking 10 feet at a time.”
Brian Walsh, CFP® at SoFi