Dow opens 150 points lower after stronger August jobs data

The Dow Jones Industrial Average opened about 153 points lower Friday after the Labor Department reported the U.S. economy added 162,000 jobs in August, well above the 56,000 economists had expected. The stronger payrolls reading increased market bets that the Federal Reserve could raise interest rates at its September policy meeting.

The unemployment rate remained at 4.1% and payrolls for June and July were revised higher, reinforcing signs of a resilient labor market. Short-term interest-rate futures reflected the shift in expectations, with one market model implying about a 65% chance of a September rate hike and another source putting the probability near 58%.

Treasury yields rose after the jobs report. The two-year Treasury yield reached its highest level since January 2025 as investors reassessed the Fed policy outlook. The change in sentiment followed comments on Thursday from Fed Governor Christopher Waller indicating he could support holding rates steady if upcoming data showed easing inflation pressures.

At the open, the Dow was down about 153 points, the S&P 500 slipped 0.1% and the Nasdaq Composite was largely unchanged. Despite the weak start, all three major indexes remained on track for weekly gains, with the S&P 500 set for roughly a 0.5% rise, the Nasdaq about 0.7% and the Dow near 0.2%.

Several individual stocks moved sharply. Lululemon Athletica fell 17.5% after cutting its full-year revenue and profit forecasts. Adobe declined 6.8% as long-time CEO Shantanu Narayen prepares to step down and be succeeded by Anil Chakravarthy. Credit-reporting firms fell following a directive from U.S. housing official Bill Pulte for Fannie Mae and Freddie Mac to allow all lenders to use VantageScore; Fair Isaac dropped about 20%, TransUnion fell roughly 9% and Equifax declined nearly 8%.

Investors are focused on inflation readings due next week. The Labor Department will release consumer price index and producer price index reports ahead of the Federal Open Market Committee meeting on Sept. 15-16. Policymakers are scheduled to review those reports as part of their decision-making.

Market data show September has historically been a weaker month for U.S. stocks, with a large portion of that weakness occurring in the second half of the month.