Why Tomorrow Could Be a Big Day for the Stock Market -- And the U.S. Presidential Election

A lot is going on next week. The U.S. Presidential Election is on Nov. 5 and the Federal Reserve kicks off its November meeting a day later, which will end on Nov. 7 potentially with another interest rate cut. The party that wins the presidency and congress could dramatically shape policies impacting the market and the regulatory landscape for certain sectors. Meanwhile, lower interest rates have been a key theme driving the stock market, so investors are likely hoping that the Fed keeps lowering interest rates. But before this happens, new economic data will come out tomorrow that could move the stock market significantly and impact the U.S. presidential race. Here's why tomorrow could be a big day.At 8:30 a.m. on Nov. 1, the U.S. Bureau of Labor Statistics will release October data for U.S. nonfarm payrolls, or the "jobs report." The jobs report is a snapshot of the U.S. labor market for the prior month and shows the number of jobs the U.S. economy added, the unemployment rate, and other important metrics like monthly wage growth.The labor market has been under a microscope, as investors believe it holds key clues for inflation and the trajectory of interest rates. The Fed's intense interest rate hiking campaign seemingly succeeded in bringing down inflation. However, investors are now concerned about the labor market after it triggered the Sahm Rule earlier this year. Because unemployment is a lagging indicator, once it starts moving in one direction it usually doesn't just stop immediately. Consumer spending powers roughly two-thirds of the U.S. economy, so the strength of the consumer -- and therefore the labor market -- is a key determinant of gross domestic product and inflation. A historically strong labor market fueled the incredibly high levels of inflation experienced in recent years.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool