This week in the markets
- US stocks closed higher on Wednesday after Tuesday’s midterm election results met many investors’ expectations.
- There were some big victories during the midterm elections for women and diversity across the country. Check out our recap below.
- Mortgage application volume dropped to a 4-year low last week, as interest rates hit an 8-year high.
- This Veterans Day, MoneyLion is honoring wounded service members by encouraging Plus members to donate their $1 daily cashback to Semper Fi Fund, and matching all donations.
Stock market sees highest post-midterms surge in decades
Investors were generally unsurprised by the results of the midterm elections, which helped ease anxiety and uncertainty experienced in the days leading up to Tuesday’s elections. Investors do not enjoy uncertainty, so the announcement of election results may have helped push stocks higher on Wednesday.
Democrats won control of the House of Representatives, and Republicans maintained control of the Senate. Now that Congress is split between two parties, which helps put checks and balances in place to prevent a centralization of power, investors may feel less worried about trade war and other legislation that could hinder the markets.
Needless to say, a sigh of relief was heard across Wall Street after uncertainty about the elections from previous weeks faded away. Phew! The Standard and Poor’s 500 Index (S&P 500) rose 2.11%, the Dow Jones Industrial Average (DJIA) was up 2.12%, and the Nasdaq climbed 2.64% at Wednesday’s close. This was the highest stock market surge after midterm elections for both the S&P 500 and the DJIA in three decades.
And the biggest winners of the midterm elections were … INVESTORS!
Female candidates make history in the 2018 midterm elections
The future of women in politics is looking brighter following this week’s midterm elections. Here is a recap of Tuesday’s historic wins for women candidates across the country:
- Rashida Tlaib of Michigan and Iham Omar of Minnesota became the first and second Muslim women elected to Congress.
- Deb Haaland of Arizona and Sharice Davids of Kansas became the first two Native-American women elected to Congress.
- Ayanna Pressley became Massachusetts’ first African-American congresswoman.
- Alexandria Ocasio-Cortez of New York became the youngest women ever to be elected to Congress at age 29.
- Jahana Hayes became Connecticut’s first African-American congresswoman.
- Young Kim of California became the first Korean-American woman in Congress.
- Angie Craig became Minnesota's the first openly LGBTQ congresswoman and the first openly lesbian mother in Congress.
Overall, there will be at least 118 women serving in Congress, which is 22% of all seats. Although the amount of women exceeds the previous record of 105 women from 2016, it is a far cry from equal representation, as 50.8% of the population is female. Bravo to all the ladies who are paving a path for diversity in government.
Rising interest rates are taking a toll on potential home buyers
Total mortgage applications dropped 16% from a year ago, according to the Mortgage Bankers Association. The 4-year low in mortgage application volume may have been caused by a number of factors that are making homes less affordable for home buyers, including steadily rising interest rates and a limited housing supply over the last several years.
MoneyLion would like to thank veterans
In honor of Veterans Day, MoneyLion will support wounded service members who have fought for our freedom by encouraging MoneyLion Plus members to donate their $1 daily cashback to Semper Fi Fund, one of America’s highest-rated charities. MoneyLion will double the impact of members’ cashback donations by matching contributions dollar for dollar. If you’re a member of MoneyLion Plus, you can quickly and easily honor our vets by donating your $1 daily cashback to Semper FI Fund right inside the MoneyLion app on Nov. 11.
Learn more about how MoneyLion is helping support America’s wounded service members this Veterans Day.
And now for your weekly Lionomics wrap-up. 🤓
Lionomics: Finance made easy
This week, Lionomics covered the importance of not letting politics and elections distract you from achieving your long-term financial goals. Although this week’s midterm election results did cause a rise in US stocks on Wednesday, election headlines shouldn’t guide your investment decisions. Being patient and maintaining a balanced portfolio is the smartest way to manage your money regardless of who is voted into political office. We also taught you how some investors use their investment portfolio to generate short-term income. It takes the right asset allocation of stocks and bonds (and some careful planning).
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