Dow Falls as August Jobs Report Surpasses Forecasts, Increasing Rate-Hike Expectations
The Dow Jones Industrial Average fell on Friday after the U.S. jobs report for August showed a significant increase in employment that exceeded economists' forecasts. The economy added 162,000 jobs, far above the expected 53,000, and prior months’ data were revised upward. This raised expectations of a Federal Reserve rate hike at its September meeting, with the probability now standing at 58%. The S&P 500 also declined slightly while the Nasdaq Composite rose modestly. The jobs report pushed up Treasury yields, including the 2-year yield to its highest level since January 2025. Analysts noted that although a rate hike is more likely now, final decisions will depend on upcoming inflation data. Despite Friday’s losses, broader market indices are expected to show minimal weekly changes. Earlier in the week, markets had rallied after Federal Reserve Governor Christopher Waller suggested he would support keeping rates unchanged at their current level.
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