Jobs Report Fuels Hawkish Fed Bets, US Stocks Close Lower
US stocks closed lower on Friday as a stronger-than-expected jobs report sparked bets that the Federal Reserve will raise interest rates at its upcoming meeting. The Labor Department reported that the US economy added 162,000 jobs in August, nearly three times the expected 56,000.
The robust employment data and rising inflation concerns fueled hawkish Fed bets, causing markets to price in a higher likelihood of a rate hike. According to CME's FedWatch tool, there is now a 58.4% chance of a 25-basis-point rate increase at the conclusion of this month's policy meeting.
The S&P 500 lost 29.58 points, or 0.38%, to end at 7,718.13 points, while the Nasdaq Composite fell 78.62 points, or 0.30%, to 26,505.44. The Dow Jones Industrial Average dropped 279.20 points, or 0.54%, to 53,398.15.