Take five: Midterms meet earnings
SPY•U.S. midterm elections, October payrolls, major technology earnings and central bank decisions are set to test investors this week. Analysts expect 65,000 jobs to have been added in October, after 29,000 in September.
1. Elections and payrolls
Tuesday’s U.S. midterm elections will determine whether Democrats can take control of Congress from President Donald Trump’s Republican Party. Democrats are widely expected to win the House, while control of the Senate is less certain. Investors are watching for possible policy effects on AI, Wall Street banks, crypto, fiscal spending, defence and healthcare. Friday’s October payrolls report is expected to show 65,000 jobs added, after 29,000 in September; unemployment stood at 4.2% last month.
2. Technology earnings
Apple headlines the earnings calendar, alongside companies in the AI sector. Upcoming results from Qualcomm and Advanced Micro Devices could reinforce or challenge concerns about fading investor enthusiasm for AI, following disappointing results from Alphabet, Amazon and Intel.
3. Central banks and economies
The Reserve Bank of Australia, Sweden’s Riksbank, the Bank of England and Norges Bank are scheduled to meet. Markets expect the RBA, Riksbank and Bank of England to raise rates. Brazil’s central bank decision and guidance are in focus after election turmoil sent the real and equities lower; Indonesia’s third-quarter GDP data is also due, with the rupiah near record lows.
