The Dow Jones Industrial Average retreated 0.51% to 53,414.25, while the S&P 500 and Nasdaq Composite slipped 0.38% and 0.29% respectively. Bond markets reacted sharply to the news: the two-year Treasury yield climbed 0.047 percentage point to 4.379%, hovering just 2 basis points below its annual peak. The 10-year note yield rose to 4.783%, and the 30-year bond reached 5.246%.
In section Market Quotes
Robust Jobs Data Rattles U.S. Markets as Rate Hike Bets Resurface
Unexpectedly strong employment figures for August triggered a sell-off in U.S. equities, as traders recalibrated their expectations for Federal Reserve policy. With employers adding 162,000 jobs—tripling initial economic forecasts—the sudden labor market surge has pushed Treasury yields toward 52-week highs and reignited concerns over persistent inflationary pressure.
Analysts at BNP Paribas attributed the labor rebound to a broader cyclical upturn, noting that AI-driven optimism and stimulative policies continue to tighten the supply-constrained market. This robust activity has shifted market sentiment, with odds for a rate hike at the next central bank meeting jumping to roughly 60%. The surge marks a reversal from Thursday, when comments from a Fed governor briefly fueled speculation that policymakers might opt to hold rates steady.
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