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Yahoo
6 days ago
- Business
- Yahoo
Markets stall after ADP releases dismal jobs report; dollar continues slide with another 0.4% drop
The S&P 500 and the Jones barely moved on Wednesday. Meanwhile the Nasdaq finished positive, up 0.4% for the session. The major economic news of the day was the release of ADP's private sector employment report that saw the U.S. economy add only 37,000 jobs in May. The May private sector jobs report cast a shadow on Wednesday's market moves. Or better yet—the lack thereof. Before the market opened, ADP released its monthly analysis of the state of the U.S. labor market. In the month of May, the U.S. only added 37,000 jobs. Such a low number spurred fears the ongoing trade war may finally be starting to affect the economy's hard data. The May report was far below analysts expectations which had forecasted around 110,000 jobs and April's number which had been revised down to 60,000. The pace of hiring was the lowest level seen since March 2023, ADP reported. That said, any impact the jobs report had on the stock market was muted. The S&P 500 finished rose slightly, closing up 0.01%. The Nasdaq Composite had a slightly better session, closing at a respectable 0.32%. Meanwhile the Dow Jones was the only of major indices to close negative on Wednesday. At market close finished 0.22% lower. Throughout the day there was some garden variety intraday choppiness, but nothing that would have alarmed investors that weren't day traders. Whether ADP's May jobs numbers were an expected hiccup after weeks of turbulence or the start of a much broader, more sustained slide will be the key question going forward. A big part of that answer could come on Friday when the Bureau of Labor Statistics will release its monthly report of nonfarm payroll numbers. 'Today's downside surprise could raise more eyebrows than usual,' wrote E*Trade managing director of trading and investing Chris Larkin in a note. 'Some tariff-related slowdown in the labor market is expected, the question is how significant it will be, and how the markets will respond. This month could begin to provide some answers.' Elsewhere in the market, other Bitcoin and the U.S. dollar fell. The marquee cryptocurrency and the U.S. Dollar Index fell 0.3% and 0.4% respectively on Wednesday. The U.S. dollar in particular continued its weeks-long slide. Much of the greenback's decline can be attributed to an erosion in investor confidence since the U.S. implemented tariffs on almost all of its trade partners. The subsequent fits and starts of President Donald Trump's tariff policy, in which he paused and unpaused them regularly, only added to the confusion for investors. Since the start of the year, the U.S. dollar has declined 9%. The outlook for the rest of the year didn't see much of a change in trajectory. Across Wall Street, the number of investors taking up bear positions against the dollar have grown. They show no sign of slowing up based on the currency's current path. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
6 days ago
- Business
- Business Times
JPMorgan plans to offer clients financing against crypto ETFs
[NEW YORK] JPMorgan Chase plans to let trading and wealth-management clients use some cryptocurrency-linked assets as collateral for loans, a major step by the biggest US bank to make inroads into an industry President Donald Trump has pledged to support. The firm will start providing financing against crypto exchange-traded funds, beginning with BlackRock's iShares Bitcoin Trust, in the coming weeks, people familiar with the matter said. The move marks the latest effort involving crypto among the biggest US banks after the Trump administration started removing regulatory barriers. In some cases, JPMorgan will also begin taking wealth-management clients' crypto holdings into account when assessing their overall net worth and liquid assets, the people said, asking not to be named as the plans aren't public. That means cryptocurrencies will be given similar treatment to stocks, cars or art when calculating how much a client can borrow against their assets. A spokesperson for JPMorgan declined to comment. JPMorgan was one of the first major banks to start using blockchain technology for services like payments, and counts crypto exchanges like Coinbase Global among its clients. chief executive officer Jamie Dimon has long been a sceptic of cryptocurrencies themselves. He said at the firm's investor day in May that he's 'not a fan' of Bitcoin, but that JPMorgan would allow clients to buy it. 'I don't think we should smoke, but I defend your right to smoke,' Dimon said at the time. 'I defend your right to buy Bitcoin, go at it.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In wealth management, the changes apply to all of the bank's clients globally, spanning multiple levels of wealth – from retail customers to high-net-worth individuals, the people said. Big banks have been making plans to give clients access to crypto this year, responding to client demand and a more favourable regulatory environment. Rival Morgan Stanley is working on a plan to add cryptocurrency trading to its E*Trade platform, Bloomberg reported last month. The bank previously allowed some clients to use their crypto ETFs as collateral only on a case-by-case basis, the person said. Other crypto ETFs are expected to be included after the change is made, they added. Spot-Bitcoin ETFs were introduced in the US in January 2024 and have swelled to oversee a combined US$128 billion, making them one of the most successful launches ever. Meanwhile, the cryptocurrency itself has skyrocketed since Trump won the presidential election last November, reaching an all-time high of US$111,980 in May. After donations from the industry helped propel Trump and other crypto-friendly politicians into power, the president has pushed a raft of policies in support of the sector. His family businesses have also expanded rapidly in the industry, with endeavours ranging from Bitcoin mining to memecoins. BLOOMBERG
Yahoo
30-05-2025
- Business
- Yahoo
US Financial Firms Mull Over Crypto Expansion, Seek Regulatory Clarity
As the Donald Trump administration began its second term in January, it opened the doors for many U.S. financial firms to venture into crypto asset-related activities, given the favorable stance of the administration towards despite strong endorsements from regulators, large financial firms like Bank of America BAC, Morgan Stanley MS, and Charles Schwab SCHW remain cautious regarding crypto expansion. Thus, initial steps are likely to be tentative with small pilot programs, collaborations and modest crypto trading. Earlier this month, Paul Atkins, chair of the Securities and Exchange Commission (SEC), stated his plans to overhaul cryptocurrency policies and establish guidelines for the distribution of crypto tokens that are securities, and consider whether additional exemptions are the US Office of the Comptroller of the Currency (OCC) allowed U.S. banks to manage crypto assets on behalf of their clients. The OCC confirmed that banks can buy, sell, and hold crypto in custody, alongside outsourcing certain services, such as custody and execution, to third April 2025, the Federal Deposit Insurance Corporation (FDIC) and the Board of Governors of the Federal Reserve System withdrew two joint statements that required U.S. banks to issue an advance notification concerning any crypto or stablecoin March 2025, the FDIC clarified that FDIC-supervised institutions can engage in permissible crypto-related activities without receiving prior approval. Further, Donald Trump signed an executive order to establish a strategic crypto January 2025, the SEC rescinded an accounting rule that previously required banks to recognize a liability and corresponding asset for their obligation to safeguard crypto assets. Most firms are likely to enter into custody businesses by forming alliances with existing crypto firms. If a major firm expands without any hurdles, others will likely follow in terms of running small-scale projects and considering other business prospects. Rick Wurster, CEO of Charles Schwab, told Reuters earlier this month that the signals from financial regulators were quite favorable for large firms to expand in the crypto on the first-quarter 2025 earnings call, Wurster stated that Schwab will likely launch spot cryptocurrency trading services in the next 12 months. The company already allows its clients to trade spot Bitcoin ETFs after they started trading last year. Similarly, Morgan Stanley is also planning to build a crypto trading feature for E*Trade, with a target to launch spot trading next Bank of America is considering launching stablecoins, as stated by CEO Brian Moynihan earlier this year, if the regulations allow. Further, the company along with a few other large banks is exploring issuing a joint stablecoin, with the discussions being in earlier stages at the moment. Though these regulatory endorsements are welcoming, U.S. financial firms are seeking greater clarification from the administration on what they can do in crypto and surrounding anti-money laundering (AML) rules. The firms don't want to get caught up in the rapidly evolving regulatory landscape and, therefore, are seeking well-defined guidelines before entering into the crypto space. While custody businesses to store and manage digital assets seem promising, they offer thin margins relative to higher potential risks. This makes large firms apprehensive about pursuing a large-scale expansion into the crypto custody rules for traditional banking businesses are very well defined, and there is complete clarity over what a bank is allowed to do and what is outside its scope. Similar well-defined guidelines are required for digital assets as well to persuade large financial firms to expand more aggressively into the crypto domain. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Building a Roth IRA Million: A Step-by-Step Guide Starting with $500 Monthly
Setting up a Roth IRA is easy. Make your monthly Roth IRA contributions automatic, and reinvest any dividends received. Importantly, stay the course and don't withdraw any money early. The $23,760 Social Security bonus most retirees completely overlook › Can you become a millionaire retiree? The answer is a resounding "yes" for many Americans. And the Roth IRA provides a great vehicle for making it happen. If you want to build a Roth IRA million-dollar portfolio, the process is relatively simple. Here's a step-by-step guide starting with $500 monthly. First, it's important to understand why a Roth IRA is a great tool for retirement savings. These accounts allow your money to grow tax-free. While you'll pay taxes on contributions, you won't pay any taxes on withdrawals later. There is an income threshold you must meet to set up a Roth IRA, though. The following table shows if you're eligible: Filing Type Modified Adjusted Gross Income Eligible for a Roth IRA? Single OR Married filing separately (if you didn't live with your spouse at any point during the year) OR Head of household <$150,000 Yes >=$150,000 but <$165,000 Yes (with reduced contributions) >=$165,000 No Married filing jointly OR Surviving spouses <$236,000 Yes >=$236,000 but <$246,000 Yes (with reduced contributions) >=$246,000 No Married filing separately (if you lived with your spouse at any time during the year) <$10,000 Yes (with reduced contributions) >=$10,000 No Data source: IRS. Table created by author. The next step is to set up your Roth IRA. Several online brokers make it easy to open a Roth IRA, including Charles Schwab, E*Trade, Fidelity, and Vanguard. You'll need to have several pieces of information to complete the process. Common requirements include your Social Security number, birth date, driver's license (or other government ID), mailing address, email address, and beneficiary information (name, address, and Social Security number). You could set up your Roth IRA and try to remember to contribute $500 each month. A better approach, though, is to automate your monthly contributions. The main things you'll need to set up an automatic monthly contribution are your bank account number and routing number. Once your automatic contribution is established, you'll be on the right track to get to that magic $1 million. One critical step is to select how to invest the money in your Roth IRA. Key considerations with this step include how long you have until your plan to retire and your risk tolerance. Stocks offer tremendous long-term growth prospects. Exchange-traded funds (ETFs), especially index ETFs, provide a convenient way to invest in a basket of stocks. Many individual stocks and ETFs pay dividends. Instead of letting the cash from those dividend payments accumulate, you can elect to reinvest any dividends. This approach allows you to immediately plow dividend payments into the investment alternatives you've specified. Over time, reinvested dividends can significantly boost your overall return. For example, the S&P 500 (SNPINDEX: ^GSPC) has increased by roughly 358% over the last two decades without dividends reinvested. However, the index's total return with dividends reinvested during this period is around 608%. A monthly contribution of $500 could help you build a $1 million retirement portfolio if you make an average annual return of 7% and can invest for nearly 37 years. For individuals who begin saving early in their careers, this is an attainable goal. However, if you start saving for retirement later, you'll need to contribute more. Currently, you can only contribute $7,000 per year if you're under age 50. But if you're age 50 or older, you can make $1,000 per year catch-up contributions, which brings your total annual maximum contribution amount to $8,000. Your best bet for becoming a millionaire retiree is to contribute as much as possible to your Roth IRA. The final step is an especially important one: Stay the course. Keep contributing to your Roth IRA each month. Don't make early withdrawals. And don't panic when the stock market declines. If you want to build a $1 million Roth IRA, time is on your side. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Building a Roth IRA Million: A Step-by-Step Guide Starting with $500 Monthly was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
JPMorgan to Allow Bitcoin Trading; Will Vanguard?
In a major shift, JPMorgan Chase CEO Jamie Dimon announced on Monday that the bank will now allow its clients to purchase Bitcoin, marking a notable departure from his long-standing skepticism toward the cryptocurrency. Despite his personal reservations—having previously labeled Bitcoin as "worthless" and likening it to a "pet rock"—Dimon acknowledged the growing demand from clients for access to digital assets. While JPMorgan will not provide custody services for Bitcoin, it will include the holdings in client statements, aligning the bank more closely with competitors like Morgan Stanley, which began facilitating Bitcoin purchases for clients in August 2024. This move by JPMorgan underscores the expanding institutional adoption of Bitcoin, the largest cryptocurrency by market capitalization. The $4 trillion financial services giant joins a growing list of major financial institutions, including Morgan Stanley and Bank of America, that have started offering Bitcoin-related services to meet client demand. However, not all firms are embracing this trend. Vanguard, the world's second-largest investment firm, continues to prohibit trading of spot Bitcoin ETFs on its brokerage platform, maintaining a cautious stance toward cryptocurrency investments. The launch of the first spot Bitcoin ETFs in January 2024 marked a turning point for institutional involvement in the cryptocurrency market. Firms like BlackRock and Fidelity quickly entered the space, offering clients exposure to Bitcoin through regulated investment vehicles. Morgan Stanley followed suit, allowing its wealth advisors to pitch spot Bitcoin ETFs and exploring cryptocurrency trading through its E*Trade platform. These developments reflect a broader shift in the financial industry, as traditional institutions seek to accommodate client interest in digital assets. The success of these ETFs, which have accumulated significant assets under management, indicates a growing acceptance of Bitcoin as a legitimate investment option. Despite the momentum in the industry, Vanguard remains a notable holdout. The firm has explicitly stated that it has no plans to launch its own Bitcoin ETF or offer crypto-related products on its platform. Vanguard's leadership cites concerns about the current state of crypto as an asset class and questions its enduring investment merit. Interestingly, Vanguard's new CEO and previous BlackRock executive, Salim Ramji, oversaw the firm's launch of its Bitcoin exchange-traded fund, the iShares Bitcoin Trust ETF (IBIT). Despite his background, Ramji has affirmed Vanguard's stance, emphasizing the company's commitment to its core values and client needs over following market trends. JPMorgan's decision to allow clients to buy Bitcoin signifies a broader trend of institutional adoption of cryptocurrency, reflecting the evolving landscape of financial services. As more traditional banks and brokerages integrate digital assets into their offerings, the pressure mounts on firms like Vanguard to reassess their positions. However, Vanguard's steadfast approach highlights the ongoing debate within the industry about the role of cryptocurrencies in investment portfolios. As the market continues to mature, the divergence in strategies among major financial institutions will shape the future of crypto adoption in traditional | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
