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Dow Plunging as Trump Rally Cools

By U.S. News & World Report

Is this the beginning of the end of the Trump rally?

In the first major test to a robust, months-long rally that had major indices setting new all-time highs almost daily, the Dow Jones industrial average shed around 240 points, or 1.1 percent, by noon on Wednesday. The Standard & Poor’s 500 index was off about 1 percent, while the Nasdaq composite was harder hit, falling 1.5 percent. The tech-heavy Nasdaq had set all-time closing records on both the Monday and Tuesday sessions.

[See: 9 ETFs to Buy When the Market Tanks.]

Doubt creeps in. Ironically, the cause of death for the Trump rally may end up being the president himself. The reason for Wednesday’s panic appears to be the political turmoil that’s intensified in recent days, particularly the reports of a memo written by recently fired FBI Director James Comey that purports to chronicle a private meeting with President Donald Trump in which the commander-in-chief tried to persuade Comey to drop the investigation into former national security adviser Mike Flynn.

The dovetailing of these details with revelations that Trump shared classified information with the Russians last week creates a number of serious headwinds for the Trump administration, and Wall Street is sending clear signs Wednesday that it believes these issues will distract the administration from important legislative agendas that were key to the rally to begin with.

“Investors are starting to question the Trump trade. It was predicated on health care reform, tax reform and deregulation. That momentum has clearly stalled. The market does need those elements in place to move higher — without them it’s a crapshoot,” says Sean O’Hara, president of Pacer ETF Distributors.

Winners and losers. Nine of the 11 stock market sectors were in the red on Wednesday, with financials being the biggest loser by far, off 2.2 percent. The two biggest laggards in the Dow were Goldman Sachs (ticker: GS) and JPMorgan Chase & Co. ( JPM), which fell by 3.8 percent and 2.6 percent, respectively.

The financial sector had been the single biggest stock market beneficiary of the Trump agenda, as the specter of deregulation and higher rates got investors giddy.

It’s also no accident that the third-largest decliner in the Dow on Wednesday was Apple ( AAPL), which was off 2 percent, roughly twice the sell-off suffered by the overall market. Apple stock also had a lot to gain from Trump’s policies — specifically tax reform — due mainly to its large overseas cash coffers, which are in the neighborhood of $240 billion. The Trump tax plan would create a tax holiday that would allow companies like Apple to repatriate money from overseas into the U.S. at a dramatically reduced tax rate.

While there were many losers on Wall Street Wednesday, there were a few winners as well.

The typical flight-to-safety investments did well, with Treasurys advancing as the 10-year yield fell 8 basis points to 2.247 percent. Gold was also rallying, gaining 1.6 percent, or about $20, to trade around the $1,257 level.

[See: 7 Stocks That Soar in a Recession.]

And the biggest winner of the day was the CBOE Volatility Index, which gained a whopping 23 percent during intraday trading. The VIX, commonly referred to as the “fear index,” was trading at all-time record lows as recently as May 9.

More from U.S. News

7 Dividend Stocks to Benefit From Trump Tax Changes

9 Psychological Biases That Hurt Investors

9 Ways to Invest in a Post-Election Market

Dow Plunging as Trump Rally Cools originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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