Financial events this week that might have a significant impact on your life.
- Your retirement account probably got a boost as the stock market hit a record high.
- Refinancing a house got a little more expensive.
- Individual investors continued to pour into the stock market.
- If you are a Black woman, there is good news for your future.
Here is a recap of some of the most important financial stories you should know about.
Mortgage refinancing declines as rates edge up
Spring is usually a peak season for new home sales and mortgage refinancing. Keep an eye on rising interest rates if you are considering either.
The number of Americans refinancing home mortgages dropped. Forty-three percent fewer people refinanced this week versus the same time last year.
The improving economy has moved interest rates up .03 percent on average. As a result, demand for refinancing declined.
Goldmagold commits $10 billion to close income gap for Black women
Goldman Sachs investment company announced a program called One Million Black Women. It is an effort to bridge the 15 percent earnings gap between White and Black women.
That initiative was developed with Black women’s organizations. It is being funded by $10 billion in direct investments and $100 million in philanthropic capital.
The plan will create 1.2 to 1.7 million jobs and boost annual GDP in the United States by $300 to 450 billion, Goldman predicts.
Initial investments will be made in housing, healthcare, education, access to capital, and job creation, according to Goldman.
A study by Goldman, entitled Black Womenomics, lead to the initiative.
“Largely because of lower earnings and access to capital, Black Americans are much less likely to own high-return assets than white individuals, including homes, stocks, and especially their own businesses,” the study concluded.
GameStop rises as more new investors enter the stock market
The trend of rookie investors entering the stock market continued this week. Many of them have been drawn in by the sharp rise in GameStock shares.
It is easier than ever to enter the market. However, it is also more dangerous than ever.
The price of GameStop surged up 40 percent Wednesday. However, it dropped a few minutes later. Subsequently, the stock jumped as high as 14 percent and closed at $295.50 a share Friday, according to Business Insider.
Stock prices move on financial or news reports. However, GameStop’s price moved up and down without either. On the other hand, its price is powered by social media chatter.
Those new investors are entering the market through online trading apps such as Robinhood.
The dollar value of trading by small investors is up over 85 percent in the last year, according to Goldman Sachs.
Analysts who rate stocks on value continue to recommend selling GameStop. The March 23 earnings report may impact its price.
Dow hits record high; Treasuries rise; Nasdaq declines slightly
The Dow Jones Industrial Average closed the week with a record high of 32,778.64. The Nasdaq dropped almost 79 points to 13,319.86. Meanwhile, the 10-year Treasury Bond hit its high yield for the year – 1.635 percent.
The bullish Dow reflects the positive outlook as the economy begins to reopen and consumer spending increases.
However, some economists fear rising bond prices may lead to inflation. Likewise, producer prices were higher than expected in February, according to Friday’s Labor Department report. That too may signal inflation.
The jump in the stock market probably bodes well for your mutual funds and retirement accounts. However, rising bond yields and consumer prices may mean goods could cost more in the near future.
If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.