U.S. stocks ended lower after a stronger-than-expected August employment report increased expectations that the Federal Reserve could raise rates at its Sept. 15-16, 2026, meeting, although all three major indexes gained for the week. Nonfarm payrolls rose 162,000, versus estimates of 53,000-55,000, unemployment held at 4.1% and average hourly earnings increased 3.1% year over year. CME FedWatch assigned a 58.4% probability to a 25-basis-point hike versus 41.6% for unchanged rates, while other coverage cited roughly 58%-60% odds and Polymarket priced a 53% chance of a hike versus 48% for a hold. Macquarie moved its expected first hike from December to September, followed by another in the first quarter of 2027. The Dow fell 0.51% to 53,414.25, the S&P 500 lost 0.38% to 7,718.60 and the Nasdaq declined 0.29% to 26,506.99. Higher Treasury yields pressured megacap technology shares, while semiconductors and AI-infrastructure stocks advanced. Investors await August CPI on Sept. 11 and will assess whether a rate increase can contain inflation without further lifting long-term borrowing costs amid higher oil prices, record debt, larger Treasury auctions and increased term-premium demands.