US financial news | Summary news 21 October
US finance news: live updates
Headlines: Saturday 21 October 2023
- Housingsales fall to the lowest level in more than a decade
- Five biggest US banks expected to lay off 20,000 workers this year
- The different kinds of stocks explained
- Americans’ net worth increased by 37%during the pandemic
- SSI beneficiaries will see their first2024 COLA applied check in December
Check out some of our related news articles:
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The covid-19 pandemic took a toll on the economy, and Americans were hit by record levels of inflation. Despite these developments, average net worth in the country surged by the inflation-adjusted figure of 37% in 2022 as compared to pre-pandemic numbers in 2019.
According to the Survey of Consumer Finances by the Federal Reserve, this is the biggest three-year rise since the Fed started conducting the triennial survey in 1989. The study measures income, net worth, debt, and home ownership, among other financial indicators. Read more.
For years, we’ve been playing defense and at every step going backwards. When we vote on a tentative agreement, it will be because your leadership and your council think we’ve gotten absolutely every dollar we can.
We’ve looked at the companies’ proposals. We’ve costed their offer. And in my opinion and in the opinions of the vice presidents and in the opinion of your national negotiators, there is more to be won.
Despite record concessions from Big 3, UAW says “there is more to be won”
The United Auto Workers union has been on strike for five weeks now against the Big Three automakers demanding better working conditions for its members. All three have offered record contracts but after years of “playing defense and at every step going backwards” the UAW is pushing on until they’ve “gotten absolutely every dollar we can.”
That was the message from UAW President Shawn Fain on Friday. For a second week the union has not expanded the strike which encompasses 44 of the Detroit Three’s locations across the country and involves over 34,000 UAW workers.
Through the Choose Topeka program, this Kansas city is offering up to $15,000 to select individuals and families who opt to move there for economic opportunities.
With the rise of online banking, more and more customers prefer banking operations through their smartphones instead of going to a branch or office of their choice.
For this reason, and with the aim of adapting to the needs and preferences of customers, the closures of various bank branches have not ceased in the United States... The most recent? Wells Fargo and Bank of America.
Read more on which locations will be closing in our full coverage.
For the full lowdown on Social Security and SSI payment dates in 2024, let me recommend this piece by AS USA's Corina González and Oli Povey.
You’ve got some expendable cash, and you’re ready to risk your money in the stock market. Experts say it’s important to diversify your portfolio to manage risk. But before you can do that, it's best to know what's out there for you.
Here are the different kinds of stocks so that you can choose what is best for your financial goals, as well as what is a better fit for the type of investor that you are.
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The SSA has announced the increase to COLA for 2024.
However, some beneficiaries will receive the increased payment before the end of the year.
10-Year Treasury yield soars to the highest level since July 2007
10-Year Treasury yields have been climbing quickly over the past year soaring to 4.83% on Friday, the highest level since July 2007. While the elevated long-term Treasury yields could be helping the Federal Reserve in its efforts to bring inflation back down to its target of 2% it’s resulting in more pain for American consumers.
That is coming in the form of more costly credit on car loans, credit card rates and mortgages. The most popular type of home loan, the 30-year fixed-rate mortgage, topped 8% this past week, the first time since 2000.
Mortgage rates continue upward trend for sixth week
Freddie Mac released the latest weekly average for mortgage rates in the United States. For the week ending Thursday 12 October the 30-year fixed rate was 5.63%, climbing from 7.57%, the sixth straight week it has increased. This past week, saw the 30Yr FRM daily average top 8% for the first time since 2000.
Meanwhile the 15-year fixed rate weekly average is now 6.92%, up from 6.89%, its fifth straight week rising.
Compared to the first half of 2020 with prices seen during the same period in 2023, the average price for a sold home in the US has increased by 32 percent. However, compared to the latter half of 2022, the average has fallen from $550,200 to $500,200.
However, the New York Fed reported that supply remains extremely tight, and unless more houses are put on the market, prices are unlikely to fall dramatically.
Tax filing time is still a while away, thank goodness, but that doesn’t mean preparations are yet to begin. Indeed, the IRS has announced plans for a huge trial for a new federal income tax pilot that aims to finally make taxes free, easy, and accessible.
The “Direct File” pilot test will provide taxpayers with the choice to electronically file their federal tax return directly with the IRS for free. Taxpayers can choose to use it for tax year 2023 and it will be a mobile-friendly, interview-based service that works on all devices. It will be an option for hundreds of thousands of taxpayers in 13 states in 2024. Read more.
High-interest rates and a short supply of houses have led to a historic home sales decline across the United States. The average interest rate for a 15-and-30-year mortgage is 7.63 and 6.92 percent, respectively, which makes the actual value of purchasing a home much more expensive compared to a low-rate environment. Read more.
Elon Musk has announced that there will be two new subscription tiers, a total of three models that will be determined by the amount of advertising they will be subject to.
What do the two new forms of subscription have to offer?
The Biden Administration has launched a campaign against junk fees, but ATM surcharges are higher than ever. According to a study by the personal finance site Bankrate, clients who use an “out-of-network” ATM pay $4.73 in fees, on average.
Banking experts say they may be leveraging out-of-network fees to replace lost revenue from other sources.
Stocks face most volatility since regional banking crisis
Volatility greeted investors over the past week as uncertainty about the Fed's plans for interest rates and rising bond yields have weighed on equities, per Yahoo Finance.
On Thursday, the CBOE Volatility Index, Wall Street's favorite gauge for fear and volatility, hit 21 for the first time since a regional banking crisis rocked the stock market in March.
Geopolitical tensions are rising in the Middle East and fears of recession are still proliferating through corporate America. There is uncertainty around leadership in Congress and what that could mean for another government shutdown. Bond yields are at 16-year highs, and oil prices have been resilient, too.
These factors have spooked what was previously a roaring 2023 market rally.
Changes are coming to the banking sector. As younger clients open accounts, digital banking options are increasing in demand, and automation is leading banks to close local branches.
A higher interest rate environment can change the behavior of banks; this year, many have chosen to lay off employees.
Economists expect Federal Reserve to hike rates in December
BofA Global Research said on it now expects the Federal Reserve to deliver a 25-basis-point rate hike in December instead of November.
Economists at the brokerage believe that recent comments from policymakers at the central bank suggest "they will opt for one last hike in December".
Costco is the largest price club supermarket chain in the world. The company offers discount prices on name-brand products and provides specialized departments as well as member-only services.
According to the job portal Zippia, Costco has a renowned employee retention rate, in addition to having more holidays than other supermarkets in the United States. But how much do its workers earn?
Learn about salaries, as well as the best and worst paying jobs in the company.
US finance news, live updates: welcome
Good morning and welcome to AS USA's daily live blog for Saturday 21 October 2023, bringing you the latest US financial news.
We’ll be looking at the major stories affecting Americans like the Social Security 2024 COLA increase that will boost benefits for the over 70 million recipients of monthly payments from the agency. Also changes to SNAP benefits and when they will be paid.
Likewise, how inflation is still being felt by consumers across the country and what the Federal Reserve's next steps will be. Additionally, the knock-on effects of those measures.