Strong US Job Growth Fuels Bets for September Rate Hike

US job growth data released on Friday showed stronger-than-expected results, leading to bets that the Federal Reserve may raise interest rates in September. The nonfarm payrolls rose by 162,000 jobs last month, exceeding economists' forecasts of a 56,000 increase.

The unemployment rate held steady, but two-year Treasury yields jumped 4 basis points to 4.37%, reaching their highest level since January 2025. Ten-year Treasury notes also saw a rise in yield, up nearly 2 basis points to 4.78%.

Bret Kenwell, U.S. investment analyst at eToro in New York, said investors will closely watch next week's consumer prices report ahead of the Fed's mid-September decision.