Markets are likely to have their best week in months, and unemployment is down. Plus, the Federal Reserve voted to hold interest rates around 0%. Here's how the headlines could affect your money.
On Thursday, the Dow Jones Industrial Average rose 542 points, nearly 2%. The S&P 500 also rose 2%, and the Nasdaq climbed 2.6%, in part thanks to recent job growth.
As of Friday morning, the counting of ballots state by state continued and the results of the presidential election had not yet been officially declared, but the markets seemed to shrug off the uncertainty. The major indexes are on track for their best week in months.
The Federal Reserve voted to keep short-term borrowing interest rates between 0% and 0.25%. This is the same range it has been in for the last seven months, when the coronavirus pandemic started spreading.
Although economic activity is recovering — gross domestic product is increasing and 11.4 million of the 22 million jobs lost have been recovered — the economy is still not where it was prior to the pandemic.
Video by Stephen Parkhurst
The unemployment rate fell from 7.9% in September to 6.9% in October, according to a report by The Labor Department. The U.S. added 638,000 nonfarm payroll jobs, meaning that now more than half the jobs that were lost in March and April have been recovered.
Jobs in the professional and business sector grew most, at 208,000, with the retail sector coming in second at 104,000 jobs added. The state of employment is better than some economists had projected.
Short-term borrowing refers to a loan that is expected to be paid off within a year of being taken out. You could take out a short-term loan for home or car repairs, or anytime you need money quickly. But before doing so, check the interest rates and repayment penalties to make sure borrowing doesn't get too expensive.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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