Stock Market Update: Stocks Drop as Strong Jobs Report Raises Fed Rate Hike Fears

TLDR

• The Dow, S&P 500, and Nasdaq all fell Friday after a stronger-than-expected August jobs report
• The US economy added 162,000 jobs in August, far above the 55,000 forecast
• Traders raised their bets on a September Fed rate hike to around 60% odds
• Lululemon stock crashed 16% after cutting its revenue and profit guidance
• Treasury yields rose as investors priced in the possibility of tighter monetary policy

The US stock market fell on Friday after a hot August jobs report pushed investors to raise their bets on a Federal Reserve interest rate hike.

The Dow Jones Industrial Average dropped around 0.7%, or about 380 points. The S&P 500 fell 0.5%, and the Nasdaq Composite slipped around 0.4%.

The August payrolls report showed 162,000 jobs added last month. Economists had expected just 55,000 new jobs. That beat sent a strong signal that the labor market is holding up.

The strong number raised a key question on Wall Street: would the Fed use it as a reason to hike rates?

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