U.S. Adds 165,000 Jobs as Tech Rebounds
October's job gains more than doubled expectations while the unemployment rate fell to 4.1%, as tech stocks recovered from a sharp Nasdaq sell-off.
Updated on Nov. 6, 2026 in Economic Indicators
Live Poll
Is now a good time for you to make a major purchase?
U.S. stocks opened mixed as tech shares rebounded after the Nasdaq closed 5.5% lower the prior day. The U.S. economy added 165,000 jobs in October, more than twice expectations, and the unemployment rate fell to 4.1% from 4.2%.
Why it matters
Strong hiring keeps pressure on the Federal Reserve, and markets now price an 80% chance of a 25-basis-point rate hike in December. Investors are also weighing concerns that a Democratic Congress could slow AI data centre expansion, which fueled the tech sell-off.
The October report showed 165,000 jobs added and unemployment falling to 4.1% from 4.2%, while markets price an 80% chance of a 25-basis-point hike in December. Whether upcoming CPI data will confirm that pricing has not yet been determined.
The players
Bank of England
The central bank of the United Kingdom, which raised its benchmark interest rate by 25 basis points to 4%.
The details
The Nasdaq closed 5.5% lower on the prior day before tech stocks rebounded at the open, while the Dow Jones lagged. The U.S. dollar rose as risk appetite deteriorated, and oil prices were on track for their steepest weekly decline since the start of the Covid pandemic.
Timeline
October 2026: U.S. economy added 165,000 jobs.
November 5, 2026: Nasdaq closed 5.5% lower and the Bank of England raised rates to 4%.
Next week: U.S. CPI and UK GDP data are scheduled.
December 2026: Possible Fed and ECB rate hikes.
Macro View
The strong October jobs report arrives as the Federal Reserve balances its dual mandate of maximum employment and price stability, with rate-hike pricing reflecting a labor market that has not yet cooled. Markets are now testing whether that tradeoff tilts further toward tightening.
Higher rate-hike odds can push up borrowing costs on mortgages, auto loans and credit cards for households. A cooling but still-strong job market means steady paychecks for many workers, even as the Fed weighs further tightening.
The takeaway
Watch the upcoming CPI release, since it will largely determine whether the December rate hike priced into markets actually materializes. Households with variable-rate debt should plan for the possibility of higher borrowing costs.
What happens next
U.S. CPI data is scheduled for release next week, and UK GDP data follows, both of which will shape expectations for a December rate decision.
Further reading
Track the latest readings in our Economic Indicators section for the data behind this report.
Source note: This article includes information reported by Forex.
Live Poll
Is now a good time for you to make a major purchase?
