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By Kristin Myers, Editor-in-Chief

What's Happening Today

Good morning! It's Kristin with your daily morning digest.

U.S. equity markets are plunging this morning, extending losses as last week's sell-off continues. The Nasdaq is over 3% lower, while the S&P 500 is losing 2.5%, and the Dow is down 1.6%. The ripple effect of the market downturn is also touching cryptocurrency. Bitcoin's price dropped below $33,000 this morning, its lowest price since July 2021. On the other hand, bond yields are rising, with the 10-year Treasury yield hitting over 3.1% this morning, its highest level since the end of 2018.

If you're a long-term investor, don't panic. With the Federal Reserve raising interest rates to fight inflation, it may be a good time to look at your portfolio to assess if you should reallocate money, or make changes to your investment strategy. The higher interest rates go, the more high-growth stocks that dominate the tech sector will suffer. When markets decline, it can also present an opportunity to "buy the dip." That means you could buy shares of a stock at a cheaper price if you believe that it will eventually go back up in the long run.

Some economists, including researchers at Goldman Sachs and Bank of America, suggested the risks of the U.S. entering a recession are rising, although it's still not an inevitable outcome, indicating the Fed could still achieve a "soft landing" by raising rates without a prolonged economic downturn. A recession—which is when the economy shrinks significantly across a variety of economic indicators over a period of time, usually several months—generally brings lower wages and higher unemployment. During times of recession, consumers tighten their purse strings, skipping discretionary purchases, and holding off on buying bigger ticket items like a home or car.

- Kristin

Editors' Picks

Are Private Student Loans Eligible for Forgiveness? (The Balance)

Which Should I Pay Off First: My Debt or Personal Loan? (The Balance)

Average Credit Card Interest Rate Is 20.66% (The Balance)

IRS Has Millions of Delayed Tax Returns, and Is Paying Billions in Interest to Those Waiting (The Wall Street Journal)

Bitcoin Tumbles Below $33,000 to Lowest Level Since July 2021 (Bloomberg)

Alternatives to a Home Equity Loan (The Balance)

Everything You Need To Know About a Business Loan Agreement (The Balance)

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Off the Charts

Just 30% of U.S. adults recently surveyed by Gallup said it was a good time to buy a house—a new low, and the latest sign that soaring prices and mortgage rates may cool the market.