US stocks fall as stronger payrolls lift Fed rate-rise expectations
The S&P 500 and Dow declined after August payroll growth exceeded forecasts, while chipmakers helped the Nasdaq 100 finish higher.
US stocks closed mostly lower on Friday after stronger-than-expected August payroll growth increased market expectations of a Federal Reserve interest-rate rise at its 15–16 September meeting.
The S&P 500 fell 0.38% and the Dow Jones Industrial Average declined 0.51%. The Nasdaq 100 rose 0.21%, supported by gains in chipmakers and artificial-intelligence infrastructure stocks.
August non-farm payrolls increased by 162,000, well above the 55,000 expected and the largest rise in five months, according to figures reported by Yahoo Finance and Barchart. July payroll growth was revised to an increase of 21,000, from a previously reported decline of 23,000.
Unemployment remained at 4.1%, while average hourly earnings rose 0.3% month-on-month and 3.1% year-on-year, both in line with expectations. Markets subsequently priced a 60% chance of a 25-basis-point Fed rate rise at the September meeting, up from 52% before the report. That remains a market-implied probability, not a confirmed policy decision.
Software and cryptocurrency-exposed stocks declined, weighing on broader market sentiment, while semiconductor shares advanced. The stronger jobs data also pushed US Treasury notes lower, with the 10-year yield rising 1.4 basis points to 4.782%.
