The Dow Jones Industrial Average fell on Friday as August's hotter-than-expected payrolls reading increased expectations that the Federal Reserve could raise interest rates at its next meeting.
The 30-stock Dow was down 147 points, or 0.3%. The S&P 500 slid 0.1%, while the Nasdaq Composite traded up 0.1%.
Nonfarm payrolls grew 162,000 last month, much more than the 53,000 that economists polled by Dow Jones expected. The unemployment rate held steady at 4.1%, as expected.
Treasury yields rose following the report, with the 2-year yield hitting its highest level since January 2025. Expectations that the Fed could hike rates in a couple weeks increased, as fed funds futures traders are now pricing in a 58% chance of a hike.
"A monster jobs report for August reminds us that this labor statistic has become highly volatile while nudging up the probability of a September hike slightly," said Bradford Smith, portfolio manager at Janus Henderson Investors.
