US financial news live updates: June Social Security checks, inflation rate, S&P 500 index
Headlines | Monday, 5 June 2023
- US markets retreat slightly on Monday
- Consumer Price Index to be released on June 13
- US drivers may see higher gas prices as Saudi slashes oil supply
- 250,000 Medicaid members have lost coverage in Florida, reports the Kaiser Family Foundation
- May jobs report soars past expectation again with 339,000 new payrolls
- US regulators to tighten rules for large banks after failures this year
- Investors betting that Fed will 'skip' rate hike in June
- Housing prices continue to increase in April as interest rates remain at the highest level in decades.
- How to get student loan debt canceledafter ten years
- Debt ceiling deal: The new SNAP work requirements
- 10 Jobs that could be at risk in the future due to AI
Read more from AS USA:
The Standard and Poor’s 500 Index one of the most important stock market index in the United States. It measures the performance of 500 of the largest companies listed on major US stock exchanges. These companies span various sectors of the economy and are selected based on their market capitalisation, liquidity, and other factors.
Markets are coming out of their bear conditions. After a difficult 2022, there have been big rebounds in stocks, with the S&P 500 increasing in value by nearly 20% sinceOctober 2022. The Nasdaq Composite index, which is tech company focused, has risen by 26% since January.
Each year, the HSF awards scholarships for Hispanic students in the United States. What you need to know: amounts, requirements and application deadlines.
Understanding what the middle class is crucial before it can be pinned down what people have to earn to be included in it. Many Americans believe themselves to be part of a middle class as the mask of consumption prevents them from realising they are actually workers.
Although inflation is still more than double the target of the US central bank and despite the strong economic data, future traders are now betting that the Fed will keep rates at the current level.
President Joe Biden and House Speaker Kevin McCarthy reached a compromise on the debt ceiling over the Memorial Day holiday weekend to avert a potential economic crisis that would be brought about by a default. Congress managed to quickly pass the legislation with a bipartisan vote in both chambers and President Biden signed it into law on Saturday.
One of the most salient points of the agreement was the change in work requirements for some recipients of the Supplemental Nutrition Assistance Program.
Facebook must pay compensation of $725 million to its users. Here’s how to find out if you’re eligible for a payment and how to claim it.
State agencies have started to distribute SNAP benefits. When can you expect your EBT card to be loaded in June?
Airlines double their profit projection for 2023
It looks like post-pandemic revenge travel is going strong.
Global airlines more than doubled their forecast for the industry's 2023 profit but warned delays in getting planes to cope with rising demand could dampen their post-pandemic recovery.
"The pandemic years are behind us and borders are open as normal," according to Willie Walsh, head of the International Air Transport Association.
IATA boosted its industry profit forecast to $9.8 billion from $4.7 billion buoyed by strong travel demand and an easing in oil prices.
S&P 500 on the cusp of entering bull market
The S&P 500 Index is heading toward a bull-market milestone after stocks rallied back from last year’s lows on optimism the Federal Reserve is nearing the finish line of its interest-rate hikes.
The S&P 500 rose 0.3% on Monday, widening its rise from its Oct. 12 low to 20%. If it closes trading at this level, that would push the index past the threshold of what’s considered a bull market, according to Bloomberg.
To cash Social Security checks for retirement, a person must have a Social Security number, which is given to US citizens and permanent residents, or can be obtained upon being issued a work permit. In addition, you must meet certain credit, earnings, and retirement age requirements.
As this report tells us, non-citizens of the United States can receive Social Security benefits as long as they are in the country legally or if they live abroad and meet certain criteria.
Consumer price index to be released June 13
The Bureau of Labor Statistics publishes a schedule of monthly release dates for the Consumer Price Index and associated data on consumer inflation. The CPI measures changes in what American consumers pay for everyday items ranging from coffee to cars.
Everyone is able to get the latest inflation information at once, with no one receiving an advantage that could help them in the markets or elsewhere.
The CPI information released on a given day always covers data from the previous month. The June 13 release of the CPI will reflect data gathered in May.
The income eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP) in the United States vary depending on household size and other factors.
This report gives us the monthly income limits for people living in the US to qualify for SNAP benefits:
Florida is one of a dozen states who has not expanded access to Medicaid under the Affordable Care Act.
Florida Governor and presidential hopeful Ron DeSantis has reverted the state’s Medicaid system to pre-pandemic structure, leaving thousands without health insurance.
The belief now is that policymakers will “skip” another hike when the Federal Open Market Committee meets 13-14 June.
That is even after the Department of Labor released hiring data from May that showed the US economy added 339,000 jobs, well above the 190,000 that had been expected according to a Reuters survey. However, that is a 180 degree turn from just the week prior when Wall Street was betting on another 25 basis points rate hike.
US drivers may see higher gas prices as Saudi slashes oil supply
Saudi Arabia will reduce how much oil it exports to the world in a bid to prop up the sagging price of crude, after two previous cuts by major producing countries in the OPEC+ alliance failed to push oil higher.
The Saudi cut of 1 million barrels per day, to start in July, comes as the other OPEC+ producers agreed in a meeting to extend earlier production cuts through next year.
Saudi Energy Minister Abdulaziz bin Salman said that the cut could be extended and that the group “will do whatever is necessary to bring stability to this market.”
The new cut would likely push up oil prices in the short term, but the impact after that would depend on whether Saudi Arabia decides to extend it.
The slump in oil prices has helped drivers in the US fill tanks more cheaply and gave consumers worldwide some relief from inflation.
Several banks, including Wells Fargo, Bank of America and PNC Bank, continue to close branches in the United States, following a trend in recent years. According to data from the Federal Deposit Insurance Corporation, via CNBC, approximately 8,000 banks were in operation in 2000, but by 2022, only half were surviving.
In the case of PNC Bank, more than 40 branches will be closing this month.
Over the next ten years, the Bureau of Labor Statistics estimates that around 2.1 million jobs will be lost, with one of the main drivers being the growth of automation and artificial intelligence (AI). However alarming that statistic may be, the BLS also projects the economy to add 10.4 million jobs by 2031. Together this means that the US economy will see around eight million jobs created over the next decade.
When trying to identify the ten jobs more threatened by AI, we must consider if we are talking about the total number of jobs lost or the percent of jobs lost for a certain profession.
Read our full coverage for a description of how AI will impact ten common occupations in the United States.
Costco to raise membership fees, but no date set yet
Costco has been hinting since early 2022 that it would raise its membership fee. However, no time has been set for the increase.
When asked about raising membership fees during a call with investors last week, CFO Richard Galanti said Costco will do it “at some point” but not yet.
Membership growth has continued for the company, Galanti explained, adding that inflation contributed to Costco’s decision not to raise prices at the moment.
Supplemental Security Income amounts will increase for some recipients in June.
Here’s who will get an extra boost to their monthly payments.
Social Security payments, some worth $1,800 monthly for millions of beneficiaries, will continue in June.
Here are the dates they will be sent this month.
Why Americans' loans are taking longer to pay off
Buyers of homes or new cars might be better off waiting to borrow money from banks. But if you must go ahead, either face taking on a big monthly payment, or stretching out the loan term to keep the monthly bill down - as many are doing.
New car loans lasting 73-84 months (over six years) rose to 34.4% of the market in 2022 from 28.6% in 2018, according to car information site Edmunds. A few borrowers are going even longer, with less than 1% of new car loans lasting 85 months or more.
"It's a reflection of the world we live in: Transportation affordability is a significant problem, as is housing," said Ira Rheingold, executive director of the National Association of Consumer Advocates.
"More and more dealers are offering extended loan terms: Instead of three or four or five years, they are now going way beyond that," Rheingold added. "It's the same thing with housing: Sometimes the only way to get someone into a house is to increase the mortgage length."
Ultra-long loan terms are showing up in the housing market.
Homeowners straining to pay their Federal Housing Administration mortgages can now apply to have their loans extended to 40 years to reduce monthly payments.
In April, the IRS announced that nearly 1.5 million people nationwide were still eligible to receive a tax refund worth up to $900.
It may not just be a $900 refund either, as many low- and moderate-income taxpayers might also be eligible for the Earned Income Tax Credit. For tax year 2019, the credit was $6,557.
Two major insurance companies, Allstate and State Farm, have announced that they will stop selling property and casualty coverage to new customers in California. They cite the growing risks from natural disasters and costs of paying out claims.
US regulators to tighten rules for large banks
US regulators are preparing to tighten rules for large banks, which could raise their capital requirements by 20% on average to boost the financial system's resilience after a spate of midsize bank failures this year, the Wall Street Journal reported, .
They are on track to propose the changes as early as this month, said the WSJ.
Last month, the Federal Reserve's top regulatory official told Congress that the central bank would likely unveil its plan to ratchet up capital rules for banks this summer and ensure supervisors more aggressively police lenders following the bank failures.
Fed Vice Chair for Supervision Michael Barr said the central bank was "carefully considering" rule changes for larger regional banks.
In addition to the health crisis, the covid-19 pandemic brought with it economic problems, to which the US government responded by approving three stimulus checks with the aim of providing economic assistance to those most in need.
Although the pandemic has reached manageable levels, inflation continues to be high and many families continue to have difficulties with putting food on the table. This has prompted some states to offer their own help in the absence of a fourth federal stimulus check.
Here are six states with aid projects for 2023.
Weekly average 30-year fixed mortgage rate surges toward 7%
The weekly average 30-year fixed mortgage rate rose again last week, jumping from 6.57% to 6.79% for the week ending on Thursday, 1 June. The cost of borrowing to buy a new residence is tracking interest rates in the bond market which increased as the lawmakers haggled over avoiding a debt default.
Now that legislation has been passed to suspend the debt ceiling until 1 January 2025, hopes are that borrowing costs will ease once again.
In light of inflation from the previous year and a budget surplus, several states are continuing to distribute stimulus checks and tax refunds for relief. Here’s a breakdown of the statessending out payments in June, as well as information on how to request them and the respective amounts.
Mortgage rates continued to rise in May. How will these increases impact the housing market? Will the Federal Reserve continue to push up rates?
Our coverage gives you the details.
US job growth surpasses expectations yet again
The Labor Department reported last week that the nation added 339,000 jobs in May. That is well in excess of the 190,000 that had been predicted by economists surveyed by Reuters. It also shot past the number added the month before of 253,000.
It was earlier reported that job openings grew once again in April, up 358,000 to 10.1 million. There are now 1.8 jobs available for every person that is seeking a job. The resilient economy and the tight labor market have Wall Street betting on a Fed rate hike this month. This latest news will make a “skip” let alone a “pause” by policymakers less likely.
Finance and economic news: Welcome!
While it was just a formality, the final step to ensure that the United States can continue to pay its bills was taken on Saturday when President Biden signed the bipartisan debt ceiling bill into law. With that, the nation avoids a historic and potentially catastrophic debt default. The legislation also takes the issue off the table until after the 2024 presidential election.
Bank stocks got a boost on Friday after Congress passed the legislation, rising between 2% and 12%. Wall Street saw gains as well after May jobs report blew past expectations yet again. Despite the robust hirings data, investors are betting that the Fed will hold off hiking interest rates when they meet on 13-14 June, so that policymakers can analyze economic data thoroughly.