Yields rise, stocks mostly ease after solid US jobs report
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 3, 2026. REUTERS/Staff
NEW YORK, Sept 4 : Treasury yields and the dollar rose, while the S&P 500 eased on Friday after U.S. job growth accelerated in August and the unemployment rate held steady.
The monthly report suggests the labor market remains stable and raised expectations that the U.S. Federal Reserve will raise interest rates later this month, as investors look ahead to next week's consumer inflation as key to that determination.
Nonfarm payrolls rose by 162,000 jobs last month after an upwardly revised rise of 21,000 in July. Economists polled by Reuters had forecast an increase of 56,000 after a previously reported drop of 23,000 in July.
The yield on benchmark U.S. 10-year notes was last up 1.21 basis points at 4.774 per cent. It was at 4.792 per cent just after the report. Two-year yields hit their highest since January 2025.
"In the Fed’s eyes, the labor market is holding up, which means inflation remains the bigger problem," said Bret Kenwell, U.S. investment analyst at eToro in New York.
"Next week’s CPI report will be closely watched with the Fed’s interest-rate decision looming in mid-September."
Short-term interest-rate futures now imply about a 65 per cent chance for a hike at the Fed's September 15 to 16 meeting, up from about 55 per cent before the report.
OIL PRICES EASE, DOLLAR UP
Oil prices slipped from recent highs. Renewed attacks in the U.S.-Iran war this week have sparked a jump in oil prices, adding to existing worries about higher costs.
U.S. crude was down 1.6 per cent to $89.87 a barrel and Brent lost 1.3 per cent to $94.26 per barrel.
The Dow Jones Industrial Average fell 98.46 points, or 0.19 per cent, to 53,587.65, the S&P 500 fell 6.06 points, or 0.08 per cent, to 7,741.65 and the Nasdaq Composite rose 17.02 points, or 0.06 per cent, to 26,601.08.
MSCI's gauge of stocks across the globe rose 1.02 points, or 0.09 per cent, to 1,155.76. The pan-European STOXX 600 index rose 0.04 per cent.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was up 0.2 per cent on the day. The Japanese yen briefly weakened 0.41 per cent to 156.45 per dollar. The dollar was last near flat against the yen.
Spot gold fell 1.2 per cent to $4,418.09 an ounce.
