US stocks drifted higher to more records on a holiday-shortened day of trading. The S&P 500 rose 0.3%. The Dow Jones Industrial Average climbed 0.6%, and the Nasdaq composite edged up 0.2%. Markets closed early for Christmas Eve and will remain closed for Christmas Thursday. The S&P 500 is up more than 17% this year, driven by optimism about artificial intelligence and deregulatory policies. Investors' focus is on the U.S. economy's direction and Federal Reserve interest rate policy. Unemployment claims fell last week, indicating a still-healthy labor market. Dynavax Technologies soared after French pharmaceutical company Sanofi said it would buy the vaccine maker.
Owning a home is a benchmark of success and a way to amass wealth. But in California, with increasing home prices and mortgage interest rates above 6%, combined with rent control policies, it might make more financial sense to rent. For some, renting is necessary because they cannot afford to buy. Others may rent and put additional money into the stock market or other investments to build wealth. The advantages of buying a single-family home include extra space, a sense of security and likely better schools than might be available to people living in apartments. California's homeownership rate of 55% is second lowest in the nation and a full 10 percentage points below the national average.
By KELVIN CHAN and MATT O'BRIEN AP Technology Writers
Financial institutions are raising concerns about a potential AI investment bubble. The Bank of England on Wednesday warned that tech stock prices, inflated by AI optimism, could face a sharp correction. The IMF echoed these concerns, noting that global stock prices are surging due to high expectations for AI's productivity potential. Experts point to rapid tech stock growth and stretched market valuations as signs of a bubble. While tech leaders like Jeff Bezos and Sam Altman acknowledge some risks, they speak optimistically about AI's long-term benefits.
U.S. stocks are bouncing back after the market experienced its worst day in two years on Monday, but the average investor may still be understandably spooked. Over a three day losing streak, the S&P 500 dipped more than 6% before rallying again Tuesday, up 1.6% in midday trading. For everyday people, what are the best ways to handle market volatility? The top advice is to do nothing, but ultimately your response depends in part on your circumstances and financial goals.
Stocks rose on Wall Street as calm returned to the market a day after its worst drop in nearly two years. The S&P 500 rose 1% Tuesday to break a brutal three-day losing streak. The Dow Jones Industrial Average climbed 0.8%, and the Nasdaq composite added 1%. Strong profit reports from Uber and other companies helped support the market. Stocks of all kinds climbed in a mirror opposite of the day before, when the unraveling of some popular trades and worries about the U.S. economy wracked markets. Treasury yields climbed to claw back some of their sharp drops since April.
