Markets dip as unemployment falls to 6.9 percent

U.S. stocks dipped Friday, after the Labor Department announced that the unemployment rate had fell to 6.9 percent and former Vice President Joe Biden took the lead in Pennsylvania, putting him on the cusp of securing the presidency.

The Dow Jones Industrial Average closed out the day down 67 points, or 0.2 percent, while the S&P 500 was relatively flat with a 1-point drop, negligible in percentage terms.

The jobs data for October released on Friday morning found that the economy added 638,000 jobs, a solid report belied by the significant hole that the COVID-19 pandemic has dug in the labor market.

Markets had roared ahead through the week, despite election uncertainty. The prospect of a divided government, which has historically benefited markets, helped fuel a multiday surge.

As votes came in, Biden’s prospects of taking the presidency have surged, while the Democratic chances at flipping the Senate have been reduced to a long shot.

Both Senate races in Georgia appear to be headed for a runoff in January. Democrats would need to win both in order to take control of the upper chamber. That would create a tie, but with a Biden victory would allow a Vice President Kamala Harris to serve as the tie-breaking vote.

Updated at 4:07 p.m.