TSX Takes Hit as US Jobs Data Fuels Rate-Hike Bets

The TSX Composite Index closed lower on September 4th after US jobs data indicated a sharp increase in job growth, prompting investors to bet on an interest rate hike by the Federal Reserve this month.

Data from the US Bureau of Labor Statistics showed that the unemployment rate remained steady at 4.1%, but job growth accelerated sharply in August, adding to speculation about future interest rates.

Short-term interest-rate futures prices now imply a 65% chance of a hike, up from 55% before the jobs report.

Mike Archibald, portfolio manager at AGF Investments, said 'It just reaffirms this idea that the US economy, despite some concerns, is still in a very good position.'