US Stocks End Lower Amid Stronger Jobs Report and Rising Rate Hopes
The US stock market ended lower on Friday after stronger-than-expected August employment data increased expectations that the Federal Reserve could raise interest rates at its September meeting.
The Dow Jones Industrial Average fell 0.5%, or 279.20 points, while the S&P 500 declined 0.38% and the Nasdaq Composite lost 0.3%. The selling came ahead of the three-day Labor Day weekend as investors reassessed the outlook for monetary policy following the latest labor market data.
The August jobs report showed that nonfarm payrolls increased by 162,000, nearly three times the consensus estimate of 56,000 cited by Reuters. This strong employment figure has complicated the Fed's policy outlook, making it more difficult to ease inflationary pressures despite resilient economic activity.
Treasury yields also moved higher following the jobs report, with the two-year Treasury yield reaching its highest level since January 2025.