Stocks Wobble on Strong Jobs Report    09/04 09:35

   U.S. stocks mostly fell and Treasury bond yields rose Friday after the 
government reported that employers unexpectedly added 162,000 jobs last month.

   NEW YORK (AP) -- U.S. stocks mostly fell and Treasury bond yields rose 
Friday after the government reported that employers unexpectedly added 162,000 
jobs last month.

   The surprise increase in hiring could give the Federal Reserve leeway to 
raise its benchmark short-term interest rate to fight inflation when central 
bank policymakers meet later this month.

   The S&P 500 slipped 0.1% in morning trading. The Dow Jones Industrial 
Average was down 211 points, or 0.4%, as of 10:05 a.m. Eastern time. The Nasdaq 
composite edged up 0.1%.

   Gains in technology stocks helped limit declines in other sectors. Nvidia 
rose 2.5%, Micron Technology gained 4.1% and Sandisk climbed 6.1%.

   Lululemon Athletica sank 17.1% after the retailer reported quarterly results 
that fell short of analysts' estimates and lowered its fiscal full-year outlook 
again.

   Markets were mixed in Europe and Asia.

   U.S. government bond yields, which had eased the last couple of days, mostly 
rose.

   The yield on the 10-year Treasury, which influences mortgage rates, held 
steady at 4.77%. It has been rising steadily throughout the year and was as low 
as 4.20% at the beginning of 2026.

   The yield on the 2-year Treasury, which closely tracks expectations for 
Federal Reserve moves on interest rates, rose to 4.37% from 4.34% late 
Thursday. It remains significantly higher for the year, though, and was as low 
as 3.50% at the beginning of 2026.

   Wall Street expects the central bank to raise interest rates before the year 
ends in an effort to cool inflation, which has been running hot due to rising 
oil prices amid the U.S. war with Iran and remains well above 3%. The Fed has a 
stated goal of cooling inflation to a target of 2%.

   The Labor Department reported that hiring in August far exceeded the 65,000 
forecasters had expected, according to a poll by FactSet. Labor Department 
revisions also looked good, adding 55,000 to June and July payrolls. The 
unemployment rate held steady at 4.1%.

   A stronger jobs market could make matters more complicated for the Fed, 
which has to balance supporting job growth with fighting inflation. Raising 
interest rates can help tame inflation by slowing economic growth.

   Expectations for a rate hike in September increased to 60.2% on Friday 
following the release of the jobs report, up from 49.4% Thursday and from 57% a 
week ago, according to CME FedWatch.

   On Thursday, Federal Reserve governor Christopher Waller said that if new 
data next week shows inflation is cooling, he "would be inclined" to keep the 
Fed's benchmark interest rate unchanged. Should the data show hotter inflation, 
he would consider a rate hike.

   In energy trading, benchmark U.S. crude declined 2.6% to $88.96 a barrel. 
Brent crude, the international standard, fell 2.2% to $93.44 a barrel, but both 
are up sharply this week, rising 8% to 9%. U.S. gasoline prices will be higher 
this weekend than they have ever been at this time of year, according to AAA.

   Diesel hit an all-time high for any time of the year on Friday, soaring to 
an average of $5.85 a gallon as the six-month war with Iran disrupts the 
world's flow of fuel. Because diesel is used for many freight and delivery 
networks, higher diesel prices mean higher transportation costs for a long list 
of everyday goods, a price shock that can impact prices for consumers.

   The war, which has intensified over the past week, is the main cause behind 
the recent surge in energy prices as the Strait of Hormuz remains effectively 
closed.

   Iran fired at Kuwait on Thursday in retaliation for U.S. bombardments 
earlier in the week.