Author: Money Mechanics

Stocks on Wall Street ended mostly lower on Friday, but the main indexes still managed to score their second straight weekly gain thanks to new consumer inflation data that raised hopes for a Federal Reserve rate cut next month. Source: Investing.com For the week, the 30-stock rose around 1.7%, the benchmark S&P 500 climbed about 0.9%, and the tech-heavy Nasdaq Composite added 0.8%. The small-cap Russell 2000 Small Cap Index jumped 3.1%. Next week is expected to be another eventful one as attention turns to the Fed’s annual Economic Policy Symposium, which will take place in Jackson Hole, Wyoming, starting…

Key Takeaways Meta reportedly offered bonuses as high as $100 million to OpenAI staff amid an AI hiring war. Top analysts caution that the surging spending on AI talent may signal we’re nearing the peak of market euphoria. For investors, the safest bet if you’re looking to gain some AI exposure may just be sticking with the tech titans funding the fight. When Sam Altman said Meta was offering $100 million bonuses to poach OpenAI employees, he wasn’t exaggerating. In fact, some of the world’s biggest tech firms are now shelling out massive compensation packages to secure top AI scientists,…

Hurricane Erin is now in the Atlantic, notably the first tropical storm to achieve hurricane status this season. Catastrophe bond and insurance-linked securities fund manager Twelve Securis has highlighted that there is a strong consensus among the models that Erin will stay far enough away from the US coastline to avoid any significant impacts.The latest advisory from the US National Hurricane Center states that, “Steady to rapid strengthening is expected during the next two to three days, and Erin is forecast to become a major hurricane during the weekend.” The NHC’s forecast advisory shows hurricane Erin has the potential to…

Brightline, the private rail line linking Orlando to Miami, refinanced $985M of junior debt at a record-high 14.89% yield, reflecting deep investor concern after delaying a July interest payment on $1.2B in munis. The company, already downgraded deeper into junk by S&P and Fitch, faces falling ridership (53% below projections) and revenue (67% below estimates), plus a potential cash shortfall this quarter without an equity infusion. This is a reminder that non-traditional, revenue-dependent projects carry extreme credit and liquidity risks in the muni space, especially in the absence of essential-service backing or state/local guarantees. While double-digit yields may seem attractive,…

The U.S. Bureau of Labor Statistics released its June 2025 Inflation report on July 15th, 2025. The report showed that Annual Inflation was up from 2.4% in May to 2.7% in June.Calculated to two digits, it was really 2.35% in May and 2.67% in June.Economists were predicting higher inflation, of 2.6% while our MIP was projecting an “Extreme High” of 2.63%. The NYSE responded by falling about 1% on the day, on fears that this might postpone the FED’s rate cuts even further.June’s Inflation Prediction:At 2.67%, June’s inflation numbers came in slightly above last month’s “extreme high” projection.Go here to…

Six Months of Earnings at Various APYs APY Earnings on $25K for 6 months Earnings on $50K for 6 months Earnings on $75K for 6 months 4.00% $495 $990 $1,485 4.25% $526 $1,051 $1,577 4.50% $556 $1,113 $1,669 4.75% $587 $1,174 $1,761 5.00% $617 $1,235 $1,852 These examples assume you can earn the stated annual percentage yield (APY) for the full six months, which may not be possible with variable-rate options. Important Don’t forget that the rate you earn from a savings account, money market account, cash account, or money market fund can fluctuate—and will almost certainly drop once the…

I was slow to the outrage about the floated idea of stopping the publication of the monthly Jobs report (in favour of just the quarterly numbers). It now appears that E.J. Antoni has walked away from that suggestion.Backing down is hardly unexpected. From the point of view of politics, economics data just seems to be a nuisance when it goes the wrong way, and shutting it off does not matter. But for people who are paid to discuss the economy, in the absence of data, there is nothing useful to do. As a result widespread push back from economists in…

The July 2025 Consumer Price Index of All Urban Consumers (CPI-U) report indicates that inflation increased by 0.2% for the month, slightly below the 0.3% rise in June. These data were released at 8:30 am EST on August 12, 2025, by the Bureau of Labor Statistics. Before seasonal adjustment, the year-over-year (Y-o-Y) inflation rate in the all-items index grew by 2.7%, matching the figure from June. The mixed results aligned near economists’ consensus estimates. The table below is courtesy of Investing.com. The left column represents July’s figures, while the right column represents forecasters’ expectations. As you can see, core inflation outperformed,…

Key Takeaways The One Big Beautiful Bill Act (OBBBA) created new tax-advantaged savings accounts for minors, called Trump Accounts.Eligible babies born between 2025 and 2028 will get $1,000 in seed money, with parents able to contribute an additional $5,000 per year.One source projects these accounts could hit $1.9 million by age 28—our calculations tell a very different story.There’s no reason to pass up the free government seed money, but for parents of kids born outside the eligible years, these accounts appear to offer little upside. The full article continues below these offers from our partners. How Trump Accounts Work Trump…

By David Enna, Tipswatch.com The U.S. Treasury on Thursday will offer $8 billion in a reopening auction of CUSIP 912810UH9, a 30-year Treasury Inflation-Protected Security. The auction, which will create a 29-year, 6-month TIPS, has the potential to set a multi-decade high for real yield. This TIPS originally auctioned February 20, generating a real yield to maturity of 2.403%, the highest in 23 years for this term. Its coupon rate was set at 2.375%, also the highest for this term in 23 years. CUSIP 912810UH9 trades on the secondary market. According to Bloomberg’s U.S. Yields, it closed Friday with a…