U.S. Stocks Edge Lower as Strong Jobs Report Fuels Fed Rate-Hike Bets
On Friday morning, U.S. stocks edged lower after a stronger-than-expected August jobs report increased the likelihood of another Federal Reserve rate hike in September. The Dow Jones Industrial Average fell by 0.3%, and the S&P 500 declined by 0.1%. Treasury yields rose as traders raised their odds for a Fed rate increase to about 60% following the release, up from roughly 50-50 before the report. The jobs data showed an addition of 162,000 positions in August—far exceeding economists' expectations—and maintained an unemployment rate at 4.1%. The strong labor market is a key factor for Fed decision-making ahead of its September meeting. Meanwhile, Lululemon shares dropped sharply after the company cut revenue and profit guidance. Despite concerns about AI displacing workers, data suggests that job cuts have decreased this year while hiring plans remain high.
Topics: dow_jones fed_rate_hike_bets jobs_report nasdaq s_p_500