The Cboe Volatility Index (VIX) surged to a three-month high of 18.46 as the second-quarter earnings season began, with disappointing reports from Tesla and Alphabet leading to a sell-off in the US stock market. The VIX, known as the "fear gauge," indicates the demand for protection against stock price fluctuations. As a result, the S&P 500 dropped 2.3%, and the Nasdaq 100 fell 3.5%, highlighting concerns about the sustainability of the AI-driven market rally despite high valuations in Big Tech stocks.

Legendary investor Warren Buffett's market valuation indicator, which compares the total US stock market capitalization to the latest quarterly GDP estimate, reached a record high of 200%, suggesting that stocks are highly overvalued. This surpasses the previous high of 197% in late 2021, which was followed by a year-long bear market. While some experts argue that adjustments should be made for modern economic conditions, the high indicator level reflects potential overvaluation reminiscent of the 2000 dot-com bubble.

Despite the market volatility, analysts suggest there is no need for panic, describing the recent sell-off as an "orderly retreat." Matthew Tym from Cantor Fitzgerald notes a lack of aggressive protection buying, indicating that investors are not in distress. Dan Ives of Wedbush Securities views the tech sell-off as a buying opportunity for long-term investors. Todd Jablonski of Principal Asset Management sees the volatility as typical during election seasons, with the AI wave remaining strong. Meanwhile, Tesla's stock dropped 12% due to disappointing Q2 results, and Alphabet's stock fell 5% over concerns about future margins despite beating earnings estimates. (Full story)

A recent Reddit post has ignited a debate on family dynamics and financial independence after a mother refused to let her 25-year-old daughter move back home following a 40% rent increase by her landlord. The mother, with three children, detailed how her daughter, after moving out with her boyfriend three years ago, is now unable to afford rent and sought to return home temporarily. The mother insisted on charging her market rent plus utilities, which many Reddit users found unreasonable. This decision highlights a broader issue of young adults struggling with financial independence amidst rising living costs, despite being offered financial support by many parents well into their children's late 20s and 30s, as revealed by a Pew Research Center report. The report shows that 59% of parents recently assisted their adult children, reflecting ongoing challenges even for those with higher educational attainments.

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Amid soaring grocery bills, some are seeking unconventional strategies to save money on food. One woman, Ashley, shares her unique approach of skipping grocery stores and instead purchasing kids' meals from restaurants. Documenting her journey on TikTok, she explains that ordering kids' meals curbside from various chain restaurants is not only cheaper than groceries but also time-efficient. She lists favorites like Chipotle, Olive Garden, and Texas Roadhouse, highlighting their affordable kids' meal options that include a main course, drink, and sides. This method resonates with many facing financial strain due to persistent inflation, despite recent slight declines in food prices. As grocery prices hit a 30-year high, Ashley's tactic offers a practical alternative for those struggling with the high cost of living. (Full story)

Bernie Sanders recently voiced concerns on X (formerly Twitter) about economic disparity in the U.S., highlighting that while billionaires grow richer, 60% of Americans live paycheck to paycheck. Sanders criticized Republicans for being financially supported by wealthy donors and for opposing policies beneficial to the working class, such as raising the federal minimum wage and providing universal healthcare. He praised Democrats, especially President Joe Biden, for advocating for the working class through policies like increasing the minimum wage, taxing billionaires, and expanding Social Security. Sanders emphasized that with 11.5% of Americans living in poverty and the average salary being around $60,000, the Democratic Party is more committed to addressing the needs of average Americans compared to the Republicans. (Full story)

Human traffickers have increasingly used yachts to transport migrants across the English Channel to Britain, as evidenced by recent interceptions by British Border Force. Last week, a suspected stolen yacht carrying hundreds of migrants was secured, alongside three other migrant groups arriving at the Port of Dover despite foggy conditions. On July 20 alone, at least 200 migrants arrived, while 413 made the perilous journey in small boats on a single day, highlighting a surge in crossings. Tragically, six people died in three separate incidents recently, with one fatality reported after an overcrowded vessel near Calais required a rescue operation. Authorities have intercepted and rescued 15,389 migrants this year, with 22 fatalities. The UK government is strengthening border security through new measures, including the establishment of a Border Security Command to combat smuggling gangs. Concerns over rising immigration levels and a significant backlog in asylum decisions persist, prompting calls from London Mayor Sadiq Khan to revisit the controversial Illegal Migration Bill. (Full story)