Dow Jones Rally Faces Key Test From October Jobs Report

The Dow Jones surged 3% yesterday, its strongest post-midterm rally in 44 years, with futures pointing to further gains today following a Democratic sweep in U.S. midterm elections. The removal of political uncertainty, expectations of slower spending, and a 10% drop in oil prices have pulled Treasury yields lower, while Democrats' anti-AI stance is driving a rotation from tech into the Dow, with Nasdaq futures down 0.8%. Tomorrow's nonfarm payroll report is expected to show 65,000 jobs added in October, up from September's weak 29,000, with the unemployment rate steady at 4.2% and the market pricing an 80% chance of a Fed rate hike next month.