Surging Jobs Report Raises Hopes for September Rate Hike

The US jobs market unexpectedly added 162,000 jobs in August, exceeding forecasts of 65,000. This strong hiring could give the Federal Reserve leeway to raise its benchmark short-term interest rate to fight inflation when policymakers meet later this month.

Terry Sandven, chief equity strategist at U.S. Bank Asset Management Group, said 'Today's jobs report does lean toward the Fed increasing rates,' but noted that a rate hike is not a foregone conclusion.

The S&P 500 fell 0.5%, while gains in technology stocks helped limit declines in other sectors. Nvidia rose 0.7%, Advanced Micro Devices added 3.4%, and Micron Technology gained 4.1%. However, Lululemon Athletica sank 17.3% after the retailer reported quarterly revenue that fell short of analysts' estimates.

The Labor Department revisions also looked good, adding 55,000 to June and July payrolls. The unemployment rate held steady at 4.1%.