Author: Money Mechanics

Key Takeaways Bitcoin fell to its lowest level in seven weeks on Tuesday, giving back the gains posted at the end of last week after Fed Chair Powell opened the door to a cut in interest rates. After hitting its new all-time high on Aug. 14, the cryptocurrency has reversed course, potentially laying the groundwork for a bull trap—a trading event where prices rise, before reversing sharply, leaving investors with an unexpected loss.Investors should watch key support levels on Bitcoin’s chart around $107,000 and $100,00, while also monitoring resistance areas near $117,000 and $123,000. Bitcoin (BTCUSD) fell to its lowest level…

June 2025 marked a third strong month for broad-based equity indices with gains near 5% for the S&P 500® Index (SPX®) and the Russell 2000® Index (RUT) benchmarks. Implied and realized volatility trended lower despite continued geopolitical situations, including U.S. action against Iranian nuclear sites late in the month. The Cboe S&P Equal Weight Index (SPEQX) gained 3.23%, slightly lower than the other equity indices. The Cboe Volatility Index® (The VIX® Index) closed the month at 16.73, down more than 5.5 points, one of the lowest close since February. Consistent with lower levels of general concern, correlation among stocks decreased,…

KEY TAKEAWAYS More Americans are behind on payments, and in July, the average credit score fell.Delinquencies are increasing on mortgages and auto loans, and these balances are also growing due to inflation.Even consumers with higher credit scores are struggling, highlighting the strain of prolonged high interest rates. More Americans are falling behind on their debt, and that’s hurting their credit scores. Last month, late-stage credit delinquencies, which are payments that are over 90 days late, increased across all credit score levels. As a result, the average credit score fell by 1 point in July to 701, according to VantageScore, a…

Key Takeaways Home values surged during the first few years of the pandemic, but they have dropped significantly in some regions. If you paid peak prices, a drop in home values may mean you now owe more on your mortgage than your home’s appraised value. Being underwater can limit financial flexibility, but there are ways to solve this challenge. During the COVID-19 pandemic, the real estate market boomed as record-low interest rates and lifestyle shifts created intense competition that helped drive housing prices to record highs across the U.S. Now, however, home values are falling in some areas, which could…

Key Takeaways The richest Americans pay a lower effective tax rate than the country at large, according to a new study. A new paper published by the National Bureau of Economic Research (NBER) calculated total tax rates by combining corporate, individual income, and estate taxes. Wealthy Americans paid an effective tax rate closer to the rest of the country from 2010 through 2017, but that rate fell sharply once President Donald Trump’s Tax Cuts and Jobs Act went into effect in 2018. Polls have shown for decades that Americans believe the wealthiest among us don’t pay their fair share in…

Up a scarcely believable 973% on a year-to-date (YTD) basis, the short-squeeze party is alive and well for the Newegg (NEGG) stock, thanks to the surprise rally because of the second round of the meme-stock frenzy. The short-squeeze is coming amid an expanded share sale program, with insiders continuing to dump the stock, profiting from this unlikely rally. Now, contentious former pharmaceutical executive Martin Shkreli has weighed in on the debate with a clear verdict, calling the stock “close to worthless.” Thus, he is short-selling the counter, citing the company’s weak fundamentals, especially its low gross margins. www.barchart.com Founded in…

The cryptocurrency market, which was stable over the weekend, faced a quick sell-off after political issues arose with President Donald Trump’s move to fire Fed member Lisa Cook on Monday. At the end of last week, statements from Fed chair at the meeting were seen as a clear sign of an in September, which was positively received by risky markets. However, events in the last 24 hours have led to increased selling, erasing the gains made from Powell’s comments. Bitcoin is trying to stabilize around $110,000 after dropping to $108,000. Ethereum, meanwhile, is looking to maintain its short-term upward trend…

Key Takeaways Over half of U.S. workers got a raise last year—here’s how to use yours to build real wealth. Avoid lifestyle creep: Don’t let your spending rise just because your paycheck did. Paying off high-interest debt with your raise could give you the biggest financial return. To retire richer, boost your savings rate by just 1% every time you get a raise. Use your raise to supercharge your emergency fund. Consider one of today’s best high-yield savings accounts or money market accounts, with top rates of 4.80% and better. The full article continues below these offers from our partners.…

Key Takeaways Nvidia, which accounts for about 8% of the S&P 500, is expected to move markets when it reports quarterly results after the close on Wednesday. Nvidia’s dominance within the AI chip market has made it a bellwether for AI demand, and its results now influence a variety of stocks that fall under the “AI trade” umbrella.The tech rally stalled last week amid concerns about stretched valuations and uncertain returns on AI investments. All eyes are on Nvidia heading into the artificial intelligence chip giant’s second-quarter earnings report, due after markets close on Wednesday. As the world’s most valuable…

KEY TAKEAWAYS Bank of America analysts initiated coverage of Oklo Tuesday with a bullish rating, citing the nuclear energy startup’s edge “powering the AI era.”The analysts said the company has the advantage of being vertically integrated and having long-term contracts that sell power directly to consumers, including data centers, industrial companies and government departments.Oklo shares added over 4% Tuesday and have more than tripled in value this year. Oklo (OKLO) shares surged Tuesday, as Bank of America analysts initiated coverage with a “buy” rating, citing the nuclear energy startup’s edge “powering the AI era.” The stock rose over 4% to…