The U.S. job market has shown weakness ahead of the elections, with only 12,000 jobs added in October, significantly lower than the estimated 100,000. This is the weakest job creation since December 2020, and external factors such as hurricanes and a strike at Boeing have been attributed to this disappointing performance.
Despite this, the stock market has reacted positively, with Amazon leading the charge after reporting better-than-expected earnings. Berkshire Hathaway has amassed a record cash reserve of $325.2 billion, which has raised questions about its future investments.
The political landscape is becoming increasingly critical for investors as the elections approach, with control of Congress playing a significant role in shaping economic policies and market performance. The Federal Reserve's next meeting is scheduled for November 6-7, and a 25-basis-point cut in interest rates is anticipated. The interplay between political outcomes and monetary policy will be crucial for market participants, and the financial markets are poised for volatility as stakeholders navigate a rapidly changing market.
In conclusion, the U.S. job market has shown weakness, but the stock market has reacted positively. The upcoming elections and control of Congress will have a significant impact on economic policies and market performance. The Federal Reserve's next meeting and potential interest rate cuts add to the uncertainty and volatility in the financial markets.