401(k)s get a boost as stocks soar

Welcome to The Money, where we break down financial news and provide the TL;DR version of how decisions by the Federal Reserve, government and companies impact you.

It's a good time to peek at your 401(k) .

Stock prices are soaring in the wake of the Federal Reserve saying Wednesday that it may cut interest rates multiple times next year.

The Dow Jones continued to edge toward record highs on Thursday, a day after it closed at a historic peak of 37,090.24 - up 1.4% from the previous day. The S&P 500 and Nasdaq composite also rose 1.4%, with the S&P 500 benchmark coming close to its own record high. Those indices were still seeing increases as of Thursday morning.

The stock surges followed the Fed saying it was leaving its key benchmark rate at 5.25% to 5.5% for the third consecutive month, and signaling that rather than resuming the aggressive hikes that began in March, 2022, it may now cut rates up to three times next year.

That makes Wall Street happy because lower rates can boost the price of stocks, bonds, and other investments. Markets began rallying in October as investors anticipated rate cuts could be on the way.

“Seasonal optimism sort of ignited the advance in all equity markets,” said Sam Stovall, chief investment strategist at investment research and analytics firm CFRA Research. “And with the Dow being closest to its all-time high, today's Fed notes and press conference – which I believe ended up being more dovish than the market had been anticipating – actually offered a confirmation that investors were on the right track.”

Should 'deferred interest' plans be against the law?

When it comes to deferred interest plans , many Americans say bah humbug.

The option, which is particularly tempting during the holiday season, promises that you won't have to pay interest on what you buy if you get the item paid off in a specific time period.

But if you owe even one dollar after that deadline, you'll find out the interest wasn't deferred after all, consumer advocates say. You'll be on the hook for all of it, at possibly at an annual rate of 30% or more.

That's why 62% of Americans say deferred interest should be illegal , according to a study released last month by WalletHub.

Deferred interest “is a trap,” Odysseas Papadimitriou, founder of WalletHub, said in an interview. “And major retailers and major brands go along with it.”

Living on a cruise

New cruise line, Villa Vie Residences is starting its first cruise service in May, but it's not going to be your standard one-or-two week glide.

Instead, the Continual World Cruise, aboard the Villa Vie Odyssey ship, will be - well, continual. According to a press release, passengers will be able to live on board the vessel - for up to three and a half years.

"It's a lifestyle, it's your home," Mikael Petterson, Villa Vie Residences CEO, told USA TODAY.

A five-year itinerary is also expected to be offered soon, but for the current option, cabins start at $99,999 , plus $3,500 in fees for two people.

But if you don't want to live on board, you also can hop on at different points as the ship sails across the globe.

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