Unemployment Rate Declines To 6.9%
Unemployment Rate was much better than expected and declined from 7.9% in September to 6.9% in October compared to analyst consensus of 7.7%.
Jerome Powell Says That The Fed Has Not Run Out Of Ammo
Yesterday, U.S. Fed left the interest rate unchanged and promised to support the economy as long as necessary. Fed Chair Jerome Powell also stated that the Fed did not run out of ammunition.
However, the Fed did not announce any new supportive measures, and it looks like Jerome Powell would prefer to see a new coronavirus aid package from the U.S. government before providing more support from the central bank.
Meanwhile, the result of U.S. presidential election is not yet known, and it is possible that votes may have to be recounted in states where competition between Trump and Biden was especially intense, further delaying the annoncement of the winner.
Currently, S&P 500 futures are losing ground in premarket trading as stocks look set for a pullback after the recent rally. However, they have started to rebound after the release of strong employment reports.
Oil Drops Below $38 On Virus Worries
Yesterday, WTI oil failed to continue its upside move despite the widespread optimism in the markets. Today, it is trying to settle below the $38 level on worries about the continued coronavirus surge.
On Thursday, the U.S. reported a record increase in the number of new COVID-19 cases. While the U.S. is preoccupied with the election battle, the oil market is worried that the recent surge in the number of new cases may lead to new lockdowns.
Not surprisingly, many oil-related stocks are losing ground in premarket trading and may be set for a challenging trading session.
For a look at all of today’s economic events, check out our economic calendar.