CNBC Business News Update - Market Midday: Stocks Rebound From Yesterday's Selloff, Dow Rallies 500 Points, Americans Have More Credit Card Debt 8/6/24

Episode Date: August 6, 2024

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored and reported by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Vice President Harris taps the governor of Minnesota, Tim Waltz, as her running mate. Stocks rebounding on Wall Street this afternoon after yesterday's global sell-off. The Dow now rallying 513 points, up 1.3 percent. The S&P 500 index is up 97 points, 1.8%. And the NASDAQ up 311 points now. That's almost 2%. I mean, seasonally, we're in a weak period anyway. And in an election year, markets on average have 14% corrections.

But from that moment, they go up 26% over the next year. So to me, this is just a window of opportunity for investors to get in. For us and our investors, you know, we're buying into this and dollar costs averaging in. Waddell Associates' David Waddell on CNBC. And some investors say the economy is doing just fine after Monday's market drop. What is the economy? What is it doing? It's growing about two, two and a half percent. Atlanta Fed is at two nine, whatever that is. It's not recessionary. And I look at the consumer, we all look at the consumer because it's really super important. And there's some tailwinds for the consumer because it's important.

Gasoline prices are down 10% in the past year. Mortgage rates are the lowest since April of 2023. Inflation is at 2.5%. You're growing the economy about 2, 2.5%. High Towers, Stephanie Link on CNBC. Investors are watching credit card debt, which overall hit a record in the second quarter, 1.14 trillion. Research from the New York Fed finds that credit card balances rose by $27 billion, more than 5% from the same period one year ago.

Credit cards now come with interest rates on average of more than 20%. The average credit card balance is $6,218. Now, if a cardholder just makes the minimum payments on that, it would take 18 years to pay off that $6,200. And the cardholder would pay more than $9,000 in interest. Microsoft is joining CrowdStrike, firing back at Delta Airlines after the massive outage, saying the airline declined repeated offers for help

from both Microsoft and CrowdStrike. Jessica Ettinger, CNBC. I think track and field is really special and unique in that you get out exactly what you put into it. When I am in the blocks, it's a really intense time and then I just feel like I'm flying. The Olympics from Paris on NBC and Peacock.