Economic commentator Kyla Scanlon is noticing a potentially worrying trend in the investing outlook among younger generations.

“It’s a bifurcated world,” she told CNBC’s “ETF Edge” this week. 

Scanlon, 26, who rose to prominence through her social media videos on the market and economy, explained why some members of Generation Z are aggressively saving for milestones like retirement, while others are taking a far more lax approach. 

“You do have these people who are maxing out their 401(k)s. They’re doing everything they can to plan for retirement,” she said. “But then you have the other side, which is an element to financial nihilism, where people don’t want to save for retirement. They don’t want to save money in general because they don’t believe the future is there.”

Scanlon is aiming to bridge Gen Z’s divided financial attitudes with her new book, “In This Economy? How Money and Markets Really Work.”

“Financial education is always going to be an uphill battle, just because money is such a personal subject. But it’s important that we give people the tools that they need to start somewhere,” she said.

She points to the housing market as a prime example of where young people are falling behind. Gen Zers represented just 3% of total home buyers in 2023, according to a recent report from the National Association of Realtors — a statistic Scanlon attributes to higher interest rates.

“The younger generation definitely wants [homeownership], because there’s a lot of financial benefit to having equity,” she said. “People are just trying to figure out how to do that financially right now, considering where mortgage rates are, considering where home prices have been. It’s difficult.”

Disclaimer

Despite blockbuster earnings from giants such as Alphabet and Microsoft, layoffs continue to ripple through the tech industry.

Layoffs.fyi, a platform monitoring job cuts in the tech sector, recorded more than 263,000 job losses in 2023 alone. As of April, there have been more than 75,000 job losses in the industry so far in 2024.

“So instead of rewarding the growth that we saw [tech companies] all pursue years ago, they’re now rewarding profit,” said Jeff Shulman, professor at the University of Washington’s Foster School of Business. “And so the layoffs have continued. People have become used to them. Regrettably and sadly, it seems that the layoffs are going to be the new normal.”

Even though mass tech layoffs continue, the labor market still seems strong. The U.S. economy added 303,000 jobs in March, well above the Dow Jones estimate for a rise of 200,000, with the unemployment rate edged lower to 3.8%.

According to Handshake, a popular free job posting site for college students and graduates, the tech layoffs have prompted new workers to seek other opportunities. The share of job applications from tech majors submitted to internet and software companies dropped by more than 30% between November 2021 and September 2023.

“Part of the reason why this is happening is because stability is such a major factor in students’ decisions around what types of jobs they apply to and what types of jobs they accept,” said Christine Cruzverga, chief education strategy officer at Handshake. “They’re looking at the headlines in the news and they’re paying attention to all of the layoffs that are happening in Big Tech, and that makes them feel unstable.”

Mass layoffs have eroded the shine of the tech industry, which is why workers are questioning whether getting a job in the tech industry should still be regarded as a “dream job.”

“For the people who are chasing … a tech dream job, I think keep your options open and be realistic,” said Eric Tolotti, senior partner engineer at Snowflake, who got laid off from Microsoft in 2023. “Don’t just focus on one company and feel like you have to get into that one company because it’s the dream.”

Watch the video to learn about tech workers’ sentiments, considerations for aspiring Big Tech employees, and more.

Airspace closures through the Middle East grounded and diverted flights on Saturday as Iran launched drones toward Israel.

United Airlines, which resumed service to Tel Aviv early last month after suspending Israel flights after the Hamas attacks in October, called off its Newark to Tel Aviv flight on Saturday after Israel closed its airspace. Jordan and Iraq had also closed their airspace, according to Jordanian state-owned media news outlet Al Mamlaka.

“We are closely monitoring the situation and will make decisions on upcoming flights with a focus on the safety of our customers and crews,” United said in a statement. The carrier is the only U.S. airline to have resumed service to Israel since October. Delta was scheduled to restart flights to Tel Aviv on June. 7. American Airlines has not resumed Israel service.

United also canceled its flight from Washington Dulles International Airport to Amman, Jordan on Saturday night, “due to unrest in the Middle East.”

It was not clear when flights would resume.

Flight-tracking site Flightradar24 said multiple flights bound for Tel Aviv and Amman had diverted on Saturday.

Airlines also canceled service scheduled for Sunday. Israel’s El Al cancelled more than 20 Sunday flights. Two El Al flights headed for Israel from Thailand diverted to Bangkok. The carrier told passengers not to come to the airport until notified.

Emirates Airline canceled its Dubai-Amman flight scheduled for Sunday. Air France’s Israel service was canceled for Sunday and British Airways canceled its two flights to Tel Aviv on Sunday and scrubbed a flight to Amman. Lufthansa also canceled its service to Israel.

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CNBC’s ETF Edge is dedicated to the fastest-growing trend in investing right now: ETFs. Every Monday, Bob Pisani will be joined by a panel of top market participants to offer educational and actionable advice to help you build your best portfolio.

The Federal Aviation Administration on Saturday ordered a temporary grounding of dozens of Boeing 737 Max 9 aircraft for inspections, a day after a piece of the aircraft blew out in the middle of an Alaska Airlines flight.

Images and video of Alaska Airlines Flight 1282 that were shared on social media showed a gaping hole on the side of the plane and passengers using oxygen masks before it returned to Portland shortly after taking off for Ontario, California, on Friday afternoon.

The FAA’s emergency airworthiness directive will affect about 171 planes worldwide and applies to U.S. airlines and carriers operating in U.S. territory, the agency said.

No serious injuries were reported on the flight, according to federal safety officials. There were 171 passengers and six crewmembers on board, Alaska Air said.

“Safety will continue to drive our decision-making as we assist the NTSB’s investigation into Alaska Airlines Flight 1282,” FAA Administrator Mike Whitaker said in a statement.

Large-scale groundings of aircraft by the FAA or other aviation authorities are rare. The FAA has heavily scrutinized the Boeing 737 Max since two fatal crashes grounded the jetliner worldwide almost five years ago. Two other models of the Max, the smallest and largest version, have not yet been cleared by the agency to enter commercial service.

The section of the fuselage missing appeared to correspond to an exit not used by Alaska Airlines, or other carriers that don’t have high-density seating configurations, and was plugged.

The incident was described as “an explosive decompression at the window exit,” said Sara Nelson, president of the Association of Flight Attendants-CWA, the labor union that represents Alaska’s cabin crew and flight attendants at United, Spirit and other carriers.

Anthony Brickhouse, a professor of aerospace safety at Embry-Riddle Aeronautical University, said such an incident is extremely rare.

“Rapid decompression is a serious matter,” he said. “To see a gaping hole in an aircraft is not something we typically see. In aviation safety, we would call this a structural failure.”

The incident is also a reminder to keep your seatbelt fastened when seated, he added.

“I always advise people on a commercial aircraft, keep your seatbelt on regardless of what the light says,” Brickhouse said.

A passenger didn’t appear to be seated in the seat next to the panel.

Before the FAA issued its directive, Alaska Airlines earlier said it would ground its fleet of Boeing 737 Max 9 planes. Alaska said on Saturday afternoon that of the 65 Boeing 737 Max 9 planes in its fleet, 18 “had in-depth and thorough plug door inspections performed as part of a recent heavy maintenance visit.”

Those planes were returned to service on Saturday, Alaska said.

More than 140 flights, about 14% of Alaska’s schedule, were canceled on Saturday, according to FlightAware.

The National Transportation Safety Board sent a team to Portland on Saturday to investigate the incident.

United Airlines, the largest operator of the planes in the U.S., had prepared to ground dozens of its Boeing 737 Max 9 aircraft for inspections, CNBC reported earlier.

United has 79 Boeing 737 Max 9 aircraft in its fleet but just over 30 of them have already “received the necessary inspection that is required by the FAA,” the airline said. The inspections were expected to cause about 60 flight cancellations on Saturday, United said.

The FAA said the inspections will take between four and eight hours per plane.

The Boeing 737 Max 9 is a larger version of Boeing’s best-selling jetliner, the 737 Max 8. Max planes were grounded worldwide in 2019 after two fatal crashes within about five months of one another. The U.S. lifted its flight ban on the jets in late 2020 after software and training updates.

The Boeing 737 Max 9 has an emergency exit door cut behind the wings for use in dense seating cabin configurations, like those used by budget airlines, according to Flightradar24.

“The doors are not activated on Alaska Airlines aircraft and are permanently ‘plugged,'” Flightradar24 said.

Boeing didn’t comment beyond its statement when asked about the sealed emergency exit door. Spirit AeroSystems, which makes the fuselages for the planes, referred CNBC to Boeing when asked about the incident.

“Safety is our top priority and we deeply regret the impact this event has had on our customers and their passengers,” Boeing said in a statement on Saturday. “We agree with and fully support the FAA’s decision to require immediate inspections of 737-9 airplanes with the same configuration as the affected airplane.”

The company said it is supporting the NTSB’s investigation.

There are 215 Boeing 737 Max 9 planes in service worldwide, according to aviation-data firm Cirium. In addition to United and Alaska Air, other operators include Aeromexico, Turkish Airlines, Icelandair and Panama’s Copa Airlines.

Southwest Airlines and American Airlines operate the smaller 737 Max 8.

Late last year, Boeing urged airlines to inspect aircraft for a “possible” loose bolt in the rudder control system, the latest in a series of manufacturing flaws on Boeing jets that have prompted additional inspections, and slowed deliveries of the jets.

Apple shares slipped 4% on Tuesday, after Barclays downgraded the stock to underweight and slightly trimmed its price target from $161 to $160.

Barclays analyst Tim Long wrote in a note to clients Tuesday that the iPhone 15’s current “lackluster” sales, specifically in China, presaged similarly weak iPhone 16 sales — weakness that Long expects will hold true for Apple’s hardware sales broadly.

“We are still picking up weakness on iPhone volumes and mix, as well as a lack of bounce-back in Macs, iPads and wearables,” Long wrote. Analysts and investors had noted specific weakness in China iPhone sales as far back as October.

Bloomberg has previously reported that the Chinese government has issued informal guidance forbidding state employees from using iPhones. The Chinese government has denied issuing such guidance.

Long expects that Apple’s lucrative services business will also see decelerated growth, in part due to regulatory scrutiny. Gross margin in Apple’s services businesses is roughly double the margin Apple makes on all its hardware products, and Apple CEO Tim Cook highlighted “better-than-expected” growth in that unit on an earlier investor call.

But Barclays doesn’t necessarily believe that growth is reliable in the long term.

“In 2024, we should get an initial determination on the Google TAC, and some app store investigations could intensify,” Long wrote, referring to the payments Google makes to Apple to retain its default search status.

Google CEO Sundar Pichai previously confirmed that the company pays 36% of its Safari search revenue to Apple. Regulators have been scrutinizing both Apple and Google and the default search status.

Read more at CNBC Pro.

Smartphones. Cars. Toasters. Fighter jets. While vastly different on the outside, all four items share something similar on the inside: semiconductors.

“There’s no tech industry without semiconductors,” said Stacy Rasgon, senior semiconductor analyst at Bernstein Research.

Semiconductors represent a $574 billion industry globally and are on pace to cross the trillion-dollar mark by the end of the decade. The industry has been caught in the crosshairs between the U.S. and China, two of the world’s largest economies.

The U.S., which leads the world in global semiconductor market share, recently issued sweeping restrictions on the sale of advanced chips and chipmaking equipment to China, in an attempt to restrict Beijing’s access to critical technologies. The Biden administration has said the export controls are aimed in part at preventing the use of American-made chips in China’s military. China, meanwhile, has accused the U.S. of abusing export restrictions to impede the country’s technological advances.

“We cannot allow China to have our most sophisticated semiconductor chips for use in the Chinese military,” U.S. Secretary of Commerce Gina Raimondo said in an interview with CNBC on Oct. 30, 2023. “That’s where we’ve drawn the cut line.”

Watch the video above to find out more about how the semiconductor industry became the centerpiece of a technological tug-of-war between the U.S. and China, and what the potential implications are for companies caught in the middle of it all.

As the war between Israel and the Hamas militant group ramped up last month, Kenneth Suna took to his investing-focused TikTok account.

Suna began a video asking his more than 200,000 followers “if you’re cool with profiting off war,” before adding “I am not.” He went on to list the names and performances of defense-focused funds including the iShares U.S. Aerospace & Defense ETF (ITA) and the SPDR S&P Aerospace & Defense ETF (XAR).

“You have a choice where your money goes,” the 38-year-old Washington, D.C., resident told CNBC. “I would feel guilty.”

Suna is part of a group of everyday investors skirting the “returns at any costs” mentality on moral grounds. As the latest geopolitical conflict escalates, these investors are ignoring defense stocks despite the market axiom that those holdings tend to perform better in times of war.

Indeed, the iShares U.S. Aerospace & Defense ETF popped more than 4% in the week following Hamas’ Oct. 7 attack and went on to finish October up about 3.7%. Meanwhile, the benchmark S&P 500 index added just 0.5% that week and ended the month 2.2% lower.

Retail traders poured into defense stocks and funds in the aftermath of the invasion, but inflows have since cooled, according to Vanda Research. Defense giant RTX, which Vanda found was a top sector pick among individual investors, has climbed 14% since the start of October.

But not everyone sees the intensifying conflict as a moment to invest in defense stocks. Weapon Free Funds, a screening tool gauging defense exposure in portfolios, including the funds in your 401(k), recorded a five-fold increase in visits between the attack and early November from the 30 days prior. 

Weapon Free Funds is part of a family of tools from shareholder advocacy nonprofit As You Sow aimed at helping people check if their fund dollars are invested in companies tied to themes such as guns or deforestation. Andrew Behar, As You Sow’s CEO, said it can be particularly challenging for those with money in large funds to decipher which companies they are investing in.

“The person who earns the money should have the right to decide how it’s invested and should be able to invest in alignment with their values,” Behar said. “We find there’s a really strong correlation of people who want that, but they don’t know how to do it.”

The screening platform gives funds a letter grade. An “A” means no holdings were flagged in a military weapons screen, while an “F” indicates more than 4% were. (For reference, the SPDR S&P 500 ETF Trust (SPY), which tracks the broad S&P 500 index, earned a “D'” grade.)

Critics of defense companies have pointed to the fact that the need for their products can increase during periods of heightened geopolitical strife. The latest war’s impact on these businesses has already started becoming apparent: General Dynamics CFO Jason Aiken told analysts last month that artillery demand would likely see “upward pressure” as the Israel-Hamas conflict broke out alongside the ongoing war between Russia and Ukraine.

Those with moral qualms have also historically highlighted the death toll of war as a reason for their uneasiness.

Weapon Free Funds’ recent surge in interest surpassed what was seen in February and March of 2022 following Russia’s invasion of Ukraine, As You Sow said.

That can be tied to differences in public consensus of how these conflicts should play out. While there was overwhelming international support for Ukraine to fight back with weapons, opinion appears to be more mixed on the Israel-Hamas war as calls for a ceasefire grow.

These moral calculations are the latest example of a growing trend of some investors wanting their holdings to reflect personal values. In one of the newest data points on the relationship, U.S. Bank found more than four-fifths of Gen Z and millennials would underperform the S&P 500′s 10-year return to ensure the companies they invested in had aligned with their beliefs.

“A common decision making process is that if I hold a value that I’m anti-war, then I don’t want to be holding stocks that enable war,” said Brad Barber, a finance professor focused on investor psychology at the University of California, Davis. “That is a fairly simple way of trying to invest in a way that’s consistent with one’s values.”

Meanwhile, Suna said he can feel caught between two schools of thought. There are those who tell him that war is going to happen anyway, so he might as well see the return on defense stocks. On the other side of the spectrum, he’s heard younger people say that they don’t invest because no corporation is perfect or because they see the stock market as an unequitable system for building wealth.

Suna is left walking a fine line: He views investing as creating a chance at retirement one day, but simultaneously needs to feel morally sound about where his money goes. Still, while he said choices about where to invest can sometimes be tricky or complex, deciding to avoid defense stocks wasn’t a particularly difficult call.

“More and more young people are saying, ‘You know what? You can invest how you want, but I’m not OK with that,'” Suna said. “Everyone draws the line somewhere.”

Coinbase is confident that a U.S. bitcoin exchange-traded fund will be approved by the U.S. Securities and Exchange Commission, the company’s chief legal officer, Paul Grewal, told CNBC.

“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,” Grewal said in an interview with CNBC’s Arjun Kharpal.

The SEC was recently dealt a major court setback when a judge ruled that the regulator had no basis to deny crypto-focused asset manager Grayscale’s bid to turn its huge GBTC bitcoin fund into an ETF.

The SEC last week declined to appeal that ruling by a key deadline, likely paving the way for a bitcoin-related ETF to be approved in the coming months.

“I think that the firms that have stepped forward with robust proposals for these products and services are among some of the biggest blue chips in financial services,” Grewal added.

“So that, I think, suggests that we will see progress there in short order.”

He didn’t say when that’s likely to happen, and added the caveat that any decision would ultimately be up to the SEC.

But, Grewal said, it’s likely now that the SEC will approve a bitcoin ETF soon, highlighting the regulator’s failure in court to block Grayscale from converting its GBTC bitcoin fund into an ETF.

“I think that, after the U.S. Court of Appeals made clear that the SEC could not reject these applications on an arbitrary or capricious basis, we’re going to see the commission fulfill its responsibilities. I’m quite confident of that.”

The SEC declined to comment on Grewal’s comment when contacted by CNBC.

A bitcoin ETF would give investors a way to own bitcoin without having to make a direct purchase from an exchange.

That could be more appealing to retail investors looking to gain exposure to bitcoin without having to actually own the underlying asset.

Coinbase would likely benefit from any bitcoin ETF that is ultimately approved. The company, the largest crypto exchange in the United States, is a common stock held in portfolios designed to give investors exposure to crypto.

Not all is rosy in Grayscale’s bid to turn GBTC into an ETF, however.

The asset management firm’s parent company, Digital Currency Group, along with crypto exchange Gemini and DCG subsidiary Genesis, were accused in a lawsuit from New York’s attorney general of defrauding investors of more than $1 billion.

Still, Grewal sounded a positive note on the prospect of additional bitcoin ETFs being approved — sooner rather than later.

“We think that other ETFs are going to be coming online soon enough as the SEC follows the law and is required to apply the law in a neutral way to the applications that are pending,” he said.

Bitcoin has risen about 72% in the year to date, in a comeback by stealth for the world’s biggest digital currency after huge declines in 2022.

There’s been greater investor demand for the token in recent months, as the market reacts to prospect of the Federal Reserve ending its campaign of persistent interest rate rises, and as anticipation builds around the upcoming bitcoin “halving” event, which will see rewards to bitcoin miners reduced by half, thereby limiting the coin’s supply.

Still, trading volumes have declined, as retail investors have become uninterested in engaging in the market in light of a lack of volatility and in response to severe wounds suffered by once-large industry players like FTX, BlockFi and Three Arrows Capital.

FTX collapsed into bankruptcy last year after investors fled the platform en masse because of concerns over its liquidity. The company and its founder, Sam Bankman-Fried, are accused of defrauding investors in a multibillion-dollar scheme. Bankman-Fried is standing trial over these allegations and has pleaded not guilty.

Addressing the trial, Grewal said he was “quite encouraged and quite optimistic that a number of the bad actors in this space are being held to account through criminal trials and through aggressive regulatory actions.”

“We are quite excited that there are a number of developments we think that are just around the corner, or underway even as we speak, that will bring back investor and consumer interest in crypto,” Grewal added.

Travelers are flocking to airport lounges in search of complimentary food, drinks and perhaps most importantly, a chance to relax away from the hordes of travelers at the gate. The problem: plenty of other travelers are too.

Armed with high-end rewards credit cards and fresh from years of big spending, more and more travelers are gaining access to airport lounges, turning what were once small, exclusive spaces for an elite few into a must-have stop for millions of passengers.

The trend has posed both an opportunity and a challenge for airlines and credit card companies as they market luxury to the masses. The spaces have to be both exclusive and attainable for enough people.

For top frequent flyers and certain credit card holders, standard airline lounge access is complimentary or discounted. Individual annual lounge memberships run between $650 and $850 for the major U.S. carriers, which have raised prices in recent years.

Delta Air Lines Sky Club lounges — and the credit cards that grant entry to them — became so popular that customers complained about the long lines and crowds at many locations. The airline in response curbed access for employees, instituted time limits and in its most controversial move yet, announced annual limits on visits for many credit card holders — even stripping some credit cards of access altogether.

But many customers complained about those changes, too, saying they were too strict. This week, Delta walked back some of the changes, highlighting how hard it has become to strike the right balance between exclusivity and access.

“Any wait is too long, and we are doing everything we can to minimize that,” Delta’s chief customer experience officer, Allison Ausband, told CNBC last summer at the opening of a new, larger Sky Club at John F. Kennedy International Airport in New York.

She said the lounges are “not a profit center for Delta by any means” but are an “investment that we’re making in the premium experience for our customers.”

Delta executives have said that revenue growth for its premium products like business class has outpaced that of main cabin economy.

Delta, United Airlines and American Airlines are racing to build more lounges and spaces and larger ones to fit high demand.

They have also divided, or are planning to divide their lounges into different tiers. United, for example, opened a grab-and-go express club at its hub at Denver International Airport last year, for travelers making tight connections, which the carrier said could free up space in more full-service lounges.

The carrier separately operates a network of Polaris lounges for travelers booked in its highest cabin class, usually on long-haul international routes.

Delta is in the process of building a network of highest-tier lounges aimed at travelers in its Delta One suites and other top customers. Those spaces are slated to begin opening next year, starting with one at Kennedy Airport, followed by Los Angeles and Boston.

Credit card issuers such as JPMorgan Chase, Capital One and American Express are also opening new spaces in airports, eager to attract and retain high-spending customers.

“Customers reward companies that take care of them and that are on their side and and that create amazing experiences,” said Jenn Scheurich, head of travel at Capital One.

The company has opened clubs at Washington Dulles International Airport and Dallas/Fort Worth International Airport and plans to open one at Denver International Airport early next month, with other projects at New York’s LaGuardia Airport and Ronald Reagan Washington National Airport.

Capital One Venture X cardholders pay a $395 annual fee for that card, which comes with unlimited access to the company’s lounges, as well as access for two guests. The general public can get in for $65 a visit.

Chase opened its first Chase Sapphire lounge in Hong Kong in 2022 and its first in the U.S., at Boston Logan International Airport, in May, featuring a tap room and massage chairs. It’s planning to open other lounges at LaGuardia Airport, Washington Dulles, Las Vegas, Philadelphia, Phoenix, and San Diego.

Those lounges are open to customers with Chase Sapphire Reserve cards, which have a $550 annual fee, along with two guests.