US Jobs Report Sparks Hawkish Bets on Rate Hike, Markets Fall

Wall Street closed lower on September 4 due to a robust jobs report that increased the likelihood of a key interest rate hike by the US Federal Reserve this month.

The Labor Department's August employment report showed the US economy added 162,000 jobs in August, nearly three times the consensus estimate of 56,000. The unemployment rate remained at 4.1 percent.

Financial markets are pricing in a 58.4 percent likelihood of a 25-basis-point rate hike at the conclusion of the Fed's September meeting, up from 49.4 percent on September 4, according to CME's FedWatch tool.

The Dow Jones Industrial Average fell 272.51 points, or 0.51 percent, to 53,413.60, while the S&P 500 lost 29.30 points, or 0.38 percent, to 7,718.41.