6 November 2026
If you are covering the latest US employment data, please find below a comment from Kit Rees, investment strategist at Quilter:
“The US labour market is firing on all cylinders with the latest non-farm payrolls report blowing expectations out of the water. The economy added 165,000 jobs in October while the unemployment rate fell to 4.1%, reinforcing a picture of a robust backdrop and putting away any fears that the US economy is buckling under the strain of higher inflation and subsequently higher interest rates.
“While we are still due one more jobs report ahead of the Federal Reserve’s next meeting in December, October’s numbers are further evidence that the US economy is chugging along nicely and puts another interest rate increase on the cards. The economy can clearly handle it so it would be a surprise at this point if we don’t end the year with another hike.
“With Brent crude holding close to $100, worries continue to grow that the economy is headed for an inflationary shock with the Democrats’ recent takeover of Congress stemming from voter concerns over cost pressures. The Fed will be reassured that the economy could withstand a further tightening in financial conditions in order to get inflation under control.
"That said, this week’s market volatility is a stark reminder that so much of the economic growth we have seen recently has been powered by the AI build out. With that now under threat following the midterm results, the Fed will be watching for any signs of a slowdown in AI spending or financing issues that could have a negative knock-on impact on the wider economy and thus the path for interest rates.”
