U.S. stocks slip as 162,000 August jobs lift September Fed hike odds to 58%

  • U.S. stocks declined after stronger-than-expected August payrolls revived rate-hike concerns.
  • August payrolls rose 162,000, versus economists’ 55,000 consensus forecast.
  • The September 15-16 Federal Open Market Committee meeting follows August CPI data due September 11.

Major U.S. stock indexes declined Friday after August payrolls rose by 162,000, far above economists’ 55,000 consensus forecast. The stronger-than-expected labor data prompted markets to raise the implied probability of a Federal Reserve rate increase at the September 15-16 Federal Open Market Committee meeting to 58%, from 49% on Thursday. The Dow Jones Industrial Average fell 272 points, or 0.5%, while the S&P 500 dropped 0.4% and the Nasdaq Composite lost 0.3%. Semiconductor stocks bucked the broader decline, with the PHLX Semiconductor Index advancing 3.4%. Lululemon shares tumbled 17% after the athletic apparel retailer lowered revenue and profitability guidance and reported second-quarter revenue below analyst expectations. Investors will next focus on the August consumer price index report due September 11, just ahead of the Fed’s policy meeting.

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