Tuesday,
June 18, 2024
Market recap
Dow Jones
​​38,778.10
+188.94 (+0.49%)
S&P 500
5,473.23
+41.63 (+0.77%)
Nasdaq
17,857.02
+168.14 (+0.95%)
Top Story
AI is threatening jobs, but not just in the way you think
No, robots aren’t replacing all our jobs. But as AI advances, more than half of the jobs in developed economies could be left affected.
The S&P 500 and Nasdaq Composite finished at fresh records on Monday
• Tesla stock jumped more than 5% after kicking off a legal battle to reinstate CEO Elon Musk’s pay package, which shareholders voted to approve last week.
• AI companies continued their strong performance with firms like Broadcom, Dell, and Super Micro Computer rallying more than 5%.
• It’s a shortened week for the market, which will be closed on Wednesday for Juneteenth.
What to be on the lookout for today
• Retail sales for May.
Building generational wealth in a world with a growing wealth gap
Our world is unequal in many ways, from the opportunities available to who holds the power. When it comes to wealth, a wide gap remains, especially adjusted for race.
Black wealth in America is growing. But it’s still far lower compared to other demographic groups.
Here’s the situation in numbers: From 2019 to 2022, the median Black wealth increased from $27,970 to $44,890. Meanwhile, the median household wealth for Hispanic, White, and Asian households was about $62,000, $285,000, and $536,000, respectively, according to a Brookings report .
Beyond the numbers
Building wealth for your family over time to hand it down to your kids and grandkids is known as generational wealth. It can empower the next generations to reach their goals and potentially with fewer hurdles, making it a key ingredient in social and economic mobility.
Becoming a homeowner can be a key building block for this. Rising housing values played a big part in increasing Black wealth, for example.
There is also a persistent racial investment gap, per Brookings, with stock equity accounting for far more wealth among White households than Black households. Making your money work for you will depend on your individual situation, financial goals, and risk appetite.
Today’s top stories
Interest rates aren’t the only thing keeping prospective homebuyers on their toesIf you’re thinking about buying a home, there’s more to that decision that interest rates alone. We look at what else is weighing on prospective buyers’ minds.
Read more >> Are weight-loss drugs trimming Americans’ wardrobes?With weight-loss drugs increasingly popular and waistlines on the decline, some retailers are noticing a surge in demand for smaller sizes.
Read more >> Putting today’s mortgage rates in contextThe U.S. housing market remains hot and mortgage rates remain elevated. But looking at them over a longer horizon, paints a very different picture.
Read more >>Other news that caught our eye
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The surgeon general asked Congress to require warning labels on social media platforms indicating their potentially harmful effects on adolescents’ mental health.
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The IRS plans to close a loophole used by wealthy filers and businesses, which could raise more than $50 billion over the next decade.
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Attention pet owners! Nationwide is dropping insurance coverage for roughly 100,000 pets, blaming rising costs for veterinary care.
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It’s a “reasonable prediction” that the Federal Reserve will cut interest rates in December, said Minneapolis Fed President Neel Kashkari.
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AI laws are going local: California lawmakers advanced a batch of new AI regulation last month and will vote on the proposals by August.
Financial planner tip of the day
“When you approach homeownership focusing on the size and amenities of the property rather than what you can realistically afford to pay each month, you may be putting yourself in a precarious financial position. A mortgage payment is one piece of your overall financial puzzle, and can be treated accordingly.”
Brian Walsh, CFP® at SoFi