US Stocks Fall as Strong Jobs Data Boosts Rate Hike Bets
The US stock market fell on Friday after stronger-than-expected August employment data increased expectations that the Federal Reserve could raise interest rates at its September meeting.
The jobs report, which was released earlier this week, showed that the US economy added 162,000 jobs in August, well above the 56,000 increase expected by economists polled by Reuters. The unemployment rate remained at 4.1%, in line with expectations.
The stronger labor market reading prompted traders to increase bets on a September rate hike, with short-term interest-rate futures implying a 65% chance of an increase, up from 55% before the report. Treasury yields also moved higher following the jobs report, with the two-year Treasury yield reaching its highest level since January 2025.
The Dow Jones Industrial Average fell 153 points while the S&P 500 fell 0.10%. The Nasdaq Composite was mostly unchanged at open. Several individual stocks were under pressure, including Lululemon Athletica and Adobe, which both announced disappointing earnings forecasts.