Wall Street ends lower as solid jobs data fuels hawkish Fed bets

Wall Street ends lower as solid jobs data fuels hawkish Fed bets

By Stephen Culp and Niket Nishant

Fri September 4, 2026  

The jobs forecast was for 56,000 new jobs so when the report came in nearly triple that amount, it sent the markets into another panic over an overheated economy and new reasons for a rate hike. As today’s expert put it, “It’s hard not to think that an improving labor market is not good news for the economy, but the odds of a Fed rate hike increased a little bit as the economy continues to run a little on the hot side.”  

The odds of a September hike have now risen to 54.8% vs Thursday’s 49.4%.  More inflation data is coming next week in the form of CPI and PCE which should provide considerably more clarity. Chips gained 3.4% but are still down nearly 18% for the quarter. Volume going into the holiday weekend was well below the 14.89 average, coming in at 13.14 billion. 

DJ: 53,686.11  +624.16     NAS: 26,584.06  +366.23        S&P: 7,747.71  +81.11             9/3

DJ: 53,414.25  -271.86      NAS: 26,506.99  -77.07           S&P: 7,718.60  -29.11             9/4

Fri 9-4-26 4:42 p m Wall Street ends lower as solid jobs data fuels hawkish Fed bets | Reuters