US Stocks Set for Lower Open as Jobs Report Triggers Rate Hike Bets

The US stock market is set for a lower open on Friday after a hotter-than-expected jobs report. The Labor Department reported that the US economy added 162,000 jobs in August, exceeding estimates of 56,000.

Traders have amplified bets on an interest rate hike at the Federal Reserve's September 15-16 meeting, with short-term interest-rate futures now implying a 65% chance of an increase, up from 55% before the report.

Cresalta Investment Management's Josh Stevens noted that 'this is obviously a very volatile report' and suggested that the Fed's focus will be on inflation, as employment strength could lead to higher wages.