US Stocks Slip as Strong Jobs Data Lift Rate-Hike Bets

U.S. stocks fell modestly and Treasury yields rose after employers added 162,000 jobs in August, far exceeding forecasts and signaling resilience in the labor market. The report increased investor expectations that the Federal Reserve could raise interest rates at its September meeting to contain inflation, with short-term futures pricing a roughly 50% to 65% chance of an increase. The two-year Treasury yield and the dollar rose, while the 10-year yield held near 4.77%. Markets now await next week’s inflation data, which could determine whether the Fed follows through on the rate hike expectations. Technology shares provided some support, while Lululemon plunged after lowering its full-year outlook.