Employment growth slows for most US states as covid-19 cases rise – Fitch

In a non-rating commentary, published late-Monday, global rating agency Fitch conveys the recent weakness in the pace of the US employment recovery due to the coronavirus (COVID-19) resurgence.

The rating giant also said, “Median jobs recovery (gain in non-farm payrolls) improved to 55% in September from 51% in August.”

However, comments like, “Fitch considers most states are well-positioned to deal with resulting budget volatility at current rating levels, though economic contraction could compound revenue declines that erode states' gap-closing abilities,” challenge the risk-off.

Looking closely, the report also mentions the employment worries for Hawaii while citing dramatic improvement in job scenario in states like Massachusetts.

Market implications

Updates like this probe the risk sentiment but the S&P 500 Futures print 0.50% intraday gains by press time as global markets stay cautiously optimistic for the 2020 US elections.

Read: 2020 Elections: Three states traders should watch, plus places that could provide surprises