The U.S. labor market showed unexpected strength in October, with employers adding 165,000 new jobs and the unemployment rate falling to 4.1%, according to the Labor Department. This hiring rebound comes after a weaker September and suggests the job market is stabilizing despite earlier concerns about economic slowdown. The strength of the labor market matters because it influences decisions by the Federal Reserve on interest rates, when jobs are plentiful and unemployment is low, the Fed may be less aggressive about cutting rates. Separately, the Treasury Department finalized Opportunity Zone designations for 2027, extending tax incentives for investments in underserved communities under the 2025 Working Families Tax Cut legislation. While distinct from the employment data, this policy reflects ongoing government efforts to support economic growth and opportunity across different regions, complementing the positive labor market signals from the October jobs report."
Daily Digest ·
The U.S.
What moved Wall Street and the PSEi, and what it means for your money, in plain language.
Today, in Two Lines
The day’s biggest story in each market.
The U.S. labor market showed unexpected strength in October, with employers adding 165,000 new jobs and the unemployment rate falling to 4.1%, according to the Labor Department.
The Philippine market faced mounting economic headwinds on November 6 as inflation data and stagflation concerns dominated headlines.
US & PH Markets at Last Close
Where each market finished its most recent trading session before this issue went out (markets were closed, so these repeat the last trading session).
US markets
| S&P 500 | 7,376.86 +0.31% |
| Dow Jones | 51,285.73 -0.46% |
| Nasdaq | 24,579.42 +1.09% |
| 10-Yr Treasury Yield | 4.86% |
Philippine markets
| PSEi | 5761.95 -0.28% |
| USD/PHP | 62.75 -0.89% |
| BSP Rate | 5.50% |
Winners & Losers
The stocks that moved most, and why.
PHPhilippines
- DMC DMCI Holdings+3.26%
Higher 3Q net income at P4.67 billion, increasing 52.09% year-over-year.
Today’s Full Story
USUnited States
PHPhilippines
The Philippine market faced mounting economic headwinds on November 6 as inflation data and stagflation concerns dominated headlines. October inflation jumped to 7.8 percent, the highest in nearly four years, driven by surging transport fares and fuel costs, which rose 20.1 percent and 19.7 percent respectively. This persistent price surge, combined with tepid economic growth, prompted S&P Global to warn of stagflation (a painful combination of weak growth and high inflation, the opposite of what investors want). The BSP's earlier rate hike to 5.50 percent appears unlikely to be the last: the central bank still judges itself in a tightening cycle to combat inflation that remains well above its 2–4 percent target range. Reflecting investor caution, the PSEi edged down 0.28 percent to 5,761.95, and the peso weakened to P63.055 per dollar after staging a brief two-day recovery. On a brighter note, the banking system itself remained resilient, with capital and liquidity buffers well above regulatory minimums, suggesting the financial plumbing can withstand the economic strain ahead.
US–PHHow US news affects the Philippines
The US midterm elections on November 3, which saw Democrats win control of Congress, briefly boosted the Philippine stock index and peso earlier in the week, as markets welcomed lower geopolitical tensions and falling global oil prices. However, on November 6 itself, profit-taking and domestic concerns weighed on both markets: the PSEi slipped 0.28% to 5,761.95 while the peso weakened to P63.055 against the US dollar. The initial relief reflected expectations that a Democratic Congress may ease tariff pressures on Philippine exporters, who currently face 12.5% tariffs on US-bound goods under Section 301 rules. A Democratic-led Congress could reshape trade policy, though the incoming administration's historically protectionist leanings remain a caveat. For Philippine businesses in electronics, agriculture and auto parts, major US export categories, the shift signals potential relief from unpredictable tariff swings, even if no immediate tariff cuts are guaranteed. The key uncertainty to watch is whether the new Congress will revisit or modify Trump-era tariff regimes, and whether any trade negotiations will favor Philippine exporters or remain asymmetrical.
Sa Taglish
Okay so noong November 3 yung US midterm elections, at nanalo ang Democrats sa Congress. At alam mo, initially nakakabuti yan sa atin kasi nag-rally ang PSEi at ang peso, diba, dahil ang markets ay naging optimistic sa lower geopolitical tensions at bumaba ang global oil prices. Pero tapos noong November 6 mismo, ay nag-take ng profits ang investors at may domestic concerns pa, kaya ang both markets ay nag-suffer. Nag-slip ang PSEi ng 0.28% papuntang 5,761.95, at nag-weaken ang peso to P63.055 against the US dollar. So basically, yung initial rally kasi ang expectation ay na ang Democratic Congress ay mas magiging lenient sa tariffs for Philippine exporters. Right now kasi, nahaharap tayo sa 12.5% tariffs sa lahat ng goods na papunta sa US under Section 301 rules. Pretty heavy yun, honestly. At tapos ang Democratic-led Congress, there's hope na babago ang trade policy, pero seryoso, ang incoming administration ay may history na ng protectionist stance, kaya hindi guaranteed lahat. Para sa ating industries like electronics, agriculture, auto parts, yung major export categories natin sa US, this shift ay parang silver lining, kasi at least may potential na mabawasan yung unpredictable tariff swings. Pero walang guarantee ng immediate cuts, so kailangan nating bantayan talaga kung ano ang gagawin ng new Congress. Basta ang big question mark ay kung babaguhin nila o modified ang Trump-era tariff rules, at kung favorable ba sa atin ang trade negotiations o pareho lang ng asymmetrical setup.
USD/PHP
Biggest mover: Nasdaq +1.09%
What to Watch
- BSP's next monetary policy decision will reveal whether rate hikes continue to combat inflation still above its 2-4% target range.
- Federal Reserve's interest rate path remains data-dependent; strong October US jobs report may reduce near-term rate-cut pressure.
- Philippine exporters face ongoing tariff uncertainty; watch Congressional trade policy actions under Democratic control for potential Section 301 relief.
- PSEi technical support near 5,761 level warrants monitoring amid competing domestic inflation concerns and US trade policy developments.
Sources
The original reporting behind this issue.
US markets
- US employers added a surprising 165,000 jobs in October; unemployment rate dipped to 4.1%
U.S. employers created a surprising 165,000 new jobs last month and the unemployment rate dipped to 4.1%.
- Here's What the October Jobs Report Says About the US Labor Market
The October jobs report is out. Here’s what the hiring, unemployment, and wage numbers mean for workers and for the Fed’s rate decision next month.
- U.S. Treasury Finalizes New Opportunity Zone Designations for 2027
The U.S. Treasury Department has designated 6,576 Qualified Opportunity Zones to take effect in January 2027, permanently extending tax incentives for underserved communities under the 2025 Working Families Tax Cut legislation.
PH markets
- Inflation climbs to 7.8%
October inflation surged to a near three-year high as higher fuel prices and transport fare increases drove consumer costs upward.
- PSEI ends lower, peso slips back P63 per dollar
The PSEi declined slightly as investors took profits following a two-day rally, while the peso weakened after strengthening the day before.
- BSP: Banks maintain strong buffers in H1
The Philippines banking system remained well-capitalized with manageable asset quality despite heightened economic uncertainty in the first half of 2026.
- Philippines faces stagflation threat, says S&P
S&P Global warns that the Philippines is experiencing stagflation, combining weak economic growth with elevated inflation, which could keep interest rates higher for longer.
Cross US–PH
- PSEI ends lower, peso slips back P63 per dollar
The Philippine stock index fell and the peso weakened slightly as investors took profit after a two-day rally driven by falling global oil prices and Democrat election gains in the US midterms.
- PSEi, PHP end week down due to uncertainties
Both the Philippine stock index and peso fell on Friday as investors reacted to reports of lower agricultural production and a higher unemployment rate in September.
- Manila vis-a-vis a Blue U.S. Congress
A Democratic takeover of the US Senate and House could reshape defense, trade and economic policies toward the Philippines, potentially offering Manila greater leverage on tariffs and military aid despite historical Democratic protectionism.
- US midterm results may cut fuel prices by up to P13.50/L
Democrat control of US Congress following midterm elections could help lower global oil prices, potentially reducing Philippine fuel costs significantly.
Terms to know
- Stock
- A tiny piece of ownership in a company. Buying a company's stock means you own a small part of that business.
- Stock market
- The overall marketplace where stocks are bought and sold. When we say 'the market' or show numbers like the S&P 500 or PSEi, we mean a snapshot of how stocks overall are doing that day.
- Interest rate
- The cost of borrowing money, or what you earn for saving it. When rates go up, loans get pricier, but savings can earn a bit more.
- Inflation (CPI)
- When everyday prices rise over time, so the same money buys less than before. CPI is the number used to measure it.
- Fed (Federal Reserve)
- The US central bank. It sets interest rates, which affect how expensive it is to borrow money, even here in the Philippines.
- BSP (Bangko Sentral ng Pilipinas)
- The Philippine central bank, PH's equivalent of the Fed.
- PSEi
- A single number that tracks how the Philippines' biggest company stocks are doing overall, like a report card for the PH stock market.
- bps (basis points)
- A small unit for measuring interest rate changes: 100 bps = 1%. Used because rate changes are usually tiny.
- 10-Yr Yield
- The interest rate the US government pays to borrow money long-term. When it rises, loans and mortgages tend to get pricier everywhere, not just in the US.
- USD/PHP
- How many pesos it takes to buy one US dollar.
- OFW remittances
- Money sent home by overseas Filipino workers, a key driver of peso demand.
Summaries, mover explanations, and forward-looking notes in this issue are AI-written from real market data and sourced news. Not financial advice.