5 key lessons for investors after this week's wild stock market ride
CBSN
Investors have had a wild ride this week, with the S&P 500 swinging from its biggest one-day loss in almost two years to its best performance in the same period. Aside from delivering whiplash, the stock market is also sending some important signals to ordinary investors, savers and consumers alike, experts say.
The recent bout of volatility was sparked by concerns that the U.S. economy is slowing – or could even buckle into a recession — after some weak economic data, including the disappointing August 2 employment report. The slowdown in hiring is raising the specter that the Federal Reserve has acted too slowly to cut interest rates, which the central bank last month maintained at their highest level in 23 years.
The stock market rout, with the S&P dropping 6% in a three-day period, was especially unsettling for employees trying to save for retirement and for current retirees, as well as for people socking away money to buy a home or make another big-ticket purchase.
A winter storm that is spreading across much of the U.S. is snarling travel, with thousands of flights either canceled or delayed on Monday morning. Amtrak also canceled several routes along the East coast and Mid-Atlantic states.
The Biden administration's move on Friday to block Nippon Steel's proposed purchase of U.S. Steel raises questions about the once iconic American company's future, with industry sources saying the manufacturer could struggle to energize growth or attract rival acquisition bids.
In helping instigate a heated debate over H-1B visas, Elon Musk is speaking both from personal experience and as a business owner. That's because his company, electric car maker Tesla, is among the U.S. companies that bring thousands of foreign engineers and other skilled workers into the U.S. each year.