U.S. stocks and bonds fell after the August jobs report showed 162,000 new positions. This figure nearly tripled the consensus estimate of 55,000. The unemployment rate remained steady at 4.1%.
Labor data for the prior two months was also revised higher. These updates indicate a more resilient labor market than previously reported.
The S&P 500 and Dow Jones Industrial Average both closed lower. Investors believe the strong data justifies a Federal Reserve interest rate hike in September. The central bank continues to prioritize controlling inflation through tighter monetary policy.