US Economic Data and Tech Earnings Set to Stir Markets Amid Election Tensions

This week, global markets are on alert as the U.S. prepares to release key economic data for October, alongside third-quarter GDP and PCE figures. With the U.S. presidential election nearing its final phase, investors will closely observe how these elements interact with the financial landscape.

The forthcoming non-farm payroll data is expected to show a significant slowdown, anticipating an addition of only 140,000 jobs compared to September's 254,000. Temporary disruptions such as recent hurricanes and strike actions at Boeing are likely to have impacted employment opportunities. Despite these factors, the unemployment rate is projected to remain steady at 4.1%, with average hourly earnings growth slowing slightly to 0.3% from 0.4%.

Eyes will also be on tech giants as they announce their quarterly earnings. Companies like Apple, Amazon, and others are expected to set the tone for the stock market's performance. Outside of tech, firms such as AMD, ExxonMobil, and McDonald's will also provide crucial insights into their financial health during this earnings season.

Recent financial data has consistently presented a mixed picture of the U.S. economy. Indicators like CPI and PCE highlight notable differences between overall and core readings, suggesting a complex inflation landscape. With this backdrop, anticipation builds around the Federal Reserve's next moves as the job market dynamics continue to play a pivotal role in shaping economic expectations.

Investors remain vigilant as geopolitical tensions in the Middle East add a layer of uncertainty to the markets. The balancing act between mitigating risks and capturing growth opportunities will be crucial in navigating the impending economic signals.