THE WEEK ON WALL STREET
Stocks slumped last week as investors winced over the potential for oil-shock inflation and concerns that strong jobs data could lead to higher interest rates.
The Dow Jones Industrial Average slipped 0.32 percent, while the S&P 500 Index dropped 2.59 percent. The Nasdaq Composite Index fell 4.68 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.41 percent.
FACT OF THE WEEK
On June 8, 1948, a hand-built aluminum prototype labeled “No. 1″ becomes the first vehicle to bear the name of one of the world’s leading luxury car manufacturers: Porsche.
MARKET MINUTE
Under Pressure
June kicked off with modest gains as a tech rally overcame rising oil prices. On Monday, all 3 averages logged new all-time intraday highs and record closes. The S&P 500 recorded its first close above 7,600 on Tuesday, while the Dow advanced nearly a half percentage point.
But stocks fell midweek as oil prices rose further. The S&P 500 broke its nine-day winning streak as investors fretted about the inflationary effects of the Middle East. By Wednesday’s close, the S&P and Dow Industrials had given back all the gains from the start of the week.
On Friday, a stronger-than-expected jobs report prompted worries that the Fed may have to adjust short-term interest rates. Markets fell broadly, with the S&P down over 2½ percent for the session and the Nasdaq down over 4 percent.
May Jobs
The federal government’s nonfarm payrolls report was out on Friday. The economy added 172,000 jobs in May, more than double what economists expected.
Employers were playing catch-up after pausing hiring amid last year’s trade policy uncertainties and federal government budget cuts. Unemployment remained at 4.3 percent for the month. ADP’s report on private-sector hiring, released Wednesday, tracked similarly to the federal data.
FINANCIAL STRATEGY OF THE WEEK
When Gas Prices are high: How to increase fuel efficiency
When gas prices rise, small changes in driving habits can make a noticeable difference in fuel use.
Experts suggest that driving at steady speeds around 65 mph and avoiding rapid acceleration or braking can help improve efficiency. Using cruise control on highways may also reduce fuel consumption.
Other adjustments can add up over time, including limiting idling, reducing extra weight in your vehicle, and keeping tires properly inflated.
Combining trips, carpooling when possible, and planning routes more efficiently may also help reduce overall fuel use.
While these changes may seem minor, they can help drivers get more out of each tank—especially during periods of higher fuel costs.