(KRON) – Loser: Stocks extend losses as post-Fed rally evaporates
Stocks fell sharply, giving back most of the gains seen in the previous session after the Federal Reserve raised rates by half a point.
The Fed increased its benchmark interest rate by 50 basis points, as expected, and said it would begin reducing its balance sheet in June.
However, Fed Chair Jerome Powell said during his news conference that the central bank is “not actively considering” a larger 75 basis point rate hike, which appeared to spark a rally.
The weekly initial claims report showed jobless claims for the week ending April 30 rising by 19,000 to 200,000 which is the lowest since January 17, 1970.
Facebook parent company Meta plans to reduce hiring due to growth concerns.
Winner: International airlines are restoring routes
International travel is back, and operators are cashing in on years of pent-up demand. Eager to capitalize on this explosion of demand, international airlines are scrambling to not only restore pre-pandemic routes, but to also build up new routes.
For instance, Qantas recently announced ultra-long-haul flights between Sydney and Melbourne to London and New York by the end of 2025.
Additionally, plane ticket sales are already on the rise reflecting the demand.
Domestic flight prices are up roughly 25% year-over year, while international flight prices rose by about 41%.
Americans are planning international trips to nearby destinations with locations like Cancun, Mexico emerging as top destinations this year.
Loser: Monthly car payments already average $650
New car prices that are up 12.5% year over the year. The average price of used cars is up 35.3% from a year ago.
The average amount paid for a new car has reached $45,232.
The average monthly payment is about $650 for 70.2 months (just shy of six years).
The average rate paid for dealer financing is 4.7% and the term is 70.2 months.
For used cars, the average paid is more than $30,000. The monthly average payment is $544 over 70.7 months with a rate of 8%.
With the Federal Reserve boosting a key interest rate by half a percentage point, borrowing costs are poised to head higher on a variety of consumer loans, including those for autos. This marks the Fed’s largest increase in more than two decades.