'Inequality in a nutshell' — Alexandria Ocasio-Cortez says the Dow's record high is meaningless for many Americans | Markets Insider
Rep. Alexandria Ocasio-Cortez argued that a record high for the Dow Jones industrial average underlined the problem of stagnant US wages. In a tweet on Saturday, she highlighted the widening wealth gap between investors and salaried workers. "The Dow soars, wages don't," the New York congresswoman said. "Inequality in a nutshell." While the Dow surged about 22% in 2019, US average hourly earnings rose just 2.9%. View Business Insider's homepage for more stories.
Rep. Alexandria Ocasio-Cortez argued in a tweet on Saturday that a record high for the Dow Jones industrial average, a benchmark index of 30 blue-chip stocks including Apple, Nike, and Disney, underlined the problem of stagnant US wages and the wealth gap between investors and salaried workers. "The Dow soars, wages don't," the New York congresswoman commented on an NBC News tweet about the index passing the 29,000 mark for the first time on Friday. "Inequality in a nutshell." Ocasio-Cortez was likely referring to the widening gap between US stock-market gains and wage growth in recent years. The Dow surged about 22% in 2019, but average hourly earnings, according to the US Bureau of Labor Statistics, rose just 2.9%. Stagnant US wages have puzzled many economists, given that unemployment has plunged to its lowest levels in more than 50 years. President Donald Trump has frequently touted the rising US stock market as evidence of a booming economy and as a boon for all Americans. However, Ocasio-Cortez has downplayed the relevance of stock-market gains to salaried workers who don't own stocks. Read more: Goldman Sachs says these 15 stocks are poised to explode higher as the economy thrives, based on an exclusive metric it developed "The stock market is NOT the economy," she tweeted in February 2018. "Stocks aren't jobs. Stocks aren't wages. "That's why stock prices can go up and normal people still won't feel any more secure about their future," she added. Ocasio-Cortez's comments on the inequality between workers and investors echoed those of Bill Gates. The Microsoft cofounder and billionaire philanthropist recently called for the US government to narrow the wealth gap by shifting its focus from taxing incomes to taxing investments and assets.Join the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption
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You’ve probably noticed the economy isn’t doing so hot. Consumer spending has tanked. Unemployment numbers continue...You’ve probably noticed the economy isn’t doing so hot. Consumer spending has tanked. Unemployment numbers continue to rise. But the stock market is... doing OK?Read more...
US stocks climbed on Wednesday as the Senate moved toward a final vote on a $2...US stocks climbed on Wednesday as the Senate moved toward a final vote on a $2 trillion relief package to aid economic fallout from coronavirius. The White House and the Senate reached an agreement overnight on the package, but a final vote is still pending. The bill includes payments for Americans, unemployment-benefit expansions, and loans for businesses hit by the economic slump. The gains followed the Dow Jones industrial average's best day since 1933. The benchmark index soared 11% in Tuesday's session as investors bet on a near-term deal for fresh fiscal stimulus. Watch major indexes update live here. The S&P 500 and Dow Jones industrial averge climbed on Wednesday as the Senate moved toward a final vote on a $2 trillion relief package to aid economic fallout from coronavirius. The White House and the Senate reached an agreement overnight on the bill. The tech-heavy Nasdaq Composite index slid slightly on the day. The package would expand unemployment benefits, push funds to hospitals and healthcare workers, issue emergency loans to both small and large businesses, and send checks to Americans; the bill calls for $1,200 payments for adults and $500 for each child. About $50 billion is allocated for loans for airlines, an industry hit particularly hard by the pandemic and the sudden halt to travel. Here's where the major US indexes stood at the market close on Wednesday: S&P 500: 2,475.56, up 1.2% Dow Jones industrial average: 21,200.55, up 2.4% (496 points) Nasdaq composite: 7,384.29, down 0.5% Read more: The 'trade of the century': 2 hedge-fund managers break down a simple investing strategy built to profit from the wreckage caused by the coronavirus outbreak The gains followed the Dow's best day in 87 years. The benchmark index soared 11% through Tuesday's session as a fiscal deal neared. The Federal Reserve had already issued monetary support through rate cuts, asset purchases, and new credit facilities. The Senate stimulus package would more directly put money in the hands of ailing businesses and consumers as the outbreak risks near-term economic recession. "Despite the mammoth amount of stimulus slated to enter the economy, strict containment measures are the best bet for stabilizing markets," Jeffrey Bergstrand, finance professor at the University of Notre Dame's Mendoza College of Business, told Markets Insider in an email. Now read: A JPMorgan heavyweight who advises a $1.9 trillion business breaks down 3 investing strategies set to thrive right now — even as he forecasts 'the virus is going to win' President Trump's Tuesday call to reopen the economy by Easter added fresh worry around cases spiking across the US. The lack of unified shelter-in-place mandates "will cause uncertainty to rise again" and risks "stifling a possible recovery," Bergstrand said. Oil traded higher on Wednesday morning after turning lower in the previous session. The commodity has been under pressure in recent weeks as Saudi Arabia and Russia flood the market with fresh inventory and drive prices near two-decade lows. More markets coverage from Markets Insider and Business Insider: Trump and Pence reportedly talked with a handful of Wall Street giants to get their view on how coronavirus is reshaping markets and the economy The Fed's cannonball into bond markets drove $1 billion into the world's biggest credit ETF in a single day Morgan Stanley studied decades of recession history to compile a playbook for what to buy during and after a stock bear market — and when to do itJoin the conversation about this story » NOW WATCH: The rise and fall of Pan Am
US stocks staged a modest rebound on Tuesday after the Dow Jones Industrial Average plunged the...US stocks staged a modest rebound on Tuesday after the Dow Jones Industrial Average plunged the most since 1987 the prior day. That marked its second-worst single-day decline in history. All three major US indices climbed more than 2% as investors inched back to risk assets amid strong volatility. The Federal Reserve Bank of New York continued adding capital to money markets, injecting an additional $500 billion Monday afternoon alongside its $5 trillion liquidity injection plan. Watch all major indices update live here. US stocks rose Tuesday morning, posting a minor recovery following the Dow Jones Industrial Average's biggest single-day drop since 1987 — its second-worst plunge in history. All three major US indices gained more than 2% as investors crawled back to risk assets. Monday's drop brought the intense, coronavirus-driven selling activity into its fourth calendar week and wiped out all gains made in 2019, one of the last bull market's best annual performances. Here's where major US indexes stood as of the market open on Tuesday: S&P 500: 2,444.52, up 2.5% Dow Jones Industrial Average: 20,603.87, up 2.1% (415 points) Nasdaq composite: 7,069.21, up 2.4% Read more: An investment chief whose ETF has surged 24% during the coronavirus meltdown details his strategy for profiting during stock-market crashes Overnight trading of futures contracts tied to the three indices hit their so-called upside limit as traders bet on a sharp recovery in Tuesday's session. The S&P 500 has always rebounded by at least 2% on Tuesdays that follow a 5% decline to start the week, according to Bloomberg. The climb arrives after the Federal Reserve continued utilizing its arsenal of stimulus measures to buttress the economy from a coronavirus-sourced downturn. The Federal Reserve Bank of New York stepped in on Monday to add $500 billion to money markets, further boosting liquidity after unveiling a $5 trillion capital injection scheme last week. The central bank also slashed its benchmark interest rate close to zero on Sunday for the first time since the financial crisis. The stock market's heightened volatility hasn't abated after weeks of intense price swings. The VIX index — regarded as Wall Street's preferred gauge of investor fear — surged to highs not seen since the financial crisis on Monday as the coronavirus sell-off intensified. Read more: 'Practically stealing': Jefferies mapped out dozens of cheap stocks worth owning in a coronavirus-stricken market. Here are 10 of their top picks. Airline stocks looked to recover from a dismal day of trading on Monday. Airlines for America, which represents the largest US passenger and cargo airlines, asked for a combined $54 billion in loans from the government to pad the outbreak's impact and boost the firms' balance sheets. President Trump hinted such aid would be delivered in a Monday evening tweet. "The United States will be powerfully supporting those industries like Airlines and others, that are particularly affected by the Chinese Virus. We will be stronger than ever before!" he wrote. Regeneron served as one of Tuesday's biggest winners, jumping as much as 12% in early trading after announcing plans to introduce a potential COVID-19 treatment to human trials by early summer. The news marked an acceleration in the company's drug pipeline. Now read more markets coverage from Markets Insider and Business Insider: The US economy is already mired in a coronavirus-sourced recession, UCLA economists say Treasury Secretary Mnuchin doesn't see the US falling into recession — and says 'pent-up demand' will boost the post-coronavirus economy 'Refinance your mortgage, take the money, and buy some stocks': An investment chief overseeing $7 billion says he's all-in on equities amid the mass coronavirus selloff — and shares 5 stocks he just boughtJoin the conversation about this story » NOW WATCH: 9 of the most exclusive Disney spots to visit, including the invite-only Cinderella Suite where Tom Cruise and Mariah Carey have stayed