US stocks fall 162,000 jobs fuel Fed hike bets
Wall Street declined Friday as the labor department reported adding 162,000 jobs, significantly exceeding expectations. Analysts link this strong data to increased anticipation of a Federal Reserve interest rate hike.
US stocks ended lower on Friday as investors reacted to new employment data released by the Labor Department. The August report showed the economy added 162,000 jobs in August, nearly three times the consensus expectation of 56,000 positions. Previous payroll figures for June and July were revised upward by a total of 55,000 jobs. Unemployment remained steady at 4.1%, while labor market participation rose. Major US indexes closed down during a broad selloff ahead of the three-day holiday weekend. Market participants interpret this robust report as evidence that the U.S. Federal Reserve will raise its key interest rate at this month's policy meeting to address inflation concerns, specifically relating to energy prices. Ryan Detrick, chief market strategist at Carson Group, noted that while a labor snapback is positive for employment, it suggests the economy is running hot. Detrick added that more clarity on consumer and producer price indexes will be provided next week regarding inflation trends.
