Key facts
- U.S. nonfarm payrolls increased by 162,000 in August, significantly exceeding expectations.
- The unemployment rate held steady at 4.1%.
- Traders increased expectations of a Federal Reserve interest rate hike at the September 15-16 meeting.
- Short-term interest-rate futures now imply a 65% chance of an increase.
- Treasury yields and the dollar rose following the report.
- Major U.S. stock indexes declined on Friday.
U.S. job growth accelerated in August, with nonfarm payrolls rising by 162,000, significantly exceeding economists' expectations and fueling increased bets on a Federal Reserve interest rate hike. The unemployment rate held steady at 4.1%, meeting forecasts. Short-term interest-rate futures now imply a 65% chance of an increase at the central bank's September 15-16 meeting. Following the report, Treasury yields and the dollar rose, while S&P 500 futures turned negative. Major U.S. stock indexes declined on Friday after the stronger-than-expected jobs report, which increased investor expectations for an interest rate hike. Dow E-minis were down 0.28%, S&P 500 E-minis were down 0.22%, and Nasdaq 100 E-minis were up 0.07% at 08:33 a.m. ET.