Midterms & The Market – “It’s the Economy, Stupid”

The Dow rallied 14% in October, marking the biggest monthly move since the 1970s. Price action has been choppy. Volatility continued into November, a theme we've been accustomed to in 2022. Interest rates jumped again, as expected, with the Fed sticking with its hiking campaign. Another 3/4-point rate hike came this week. Inflation is still public enemy #1.Fed Chair Powell said the Labor Market is still overheated and said the Fed does not see any signs of softening yet. That was confirmed Friday with another strong job report for October, though the unemployment rate ticked up a bit. The Market took the news in stride while stocks continued their wild ride. This, ahead of one of the most anticipated events on the calendar: The 2022 midterm elections.