US Stocks Fall on Weak Jobs Data, Rate Cut Bets Rise

U.S. stocks declined following a weaker-than-expected jobs report showing only 22,000 jobs added in August, far below the anticipated 75,000, and indicating a significant slowdown in the labor market. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all slipped after initially rising, as investors digested the data that bolstered expectations of imminent Federal Reserve interest rate cuts, possibly starting with a 50-basis-point reduction this month. Treasury yields dropped sharply, with the 10-year and 30-year yields falling to their lowest levels in months, reflecting increased demand for bonds amid economic uncertainty. Analysts highlighted that while the softening labor market supports rate cuts, concerns remain about whether this points to a temporary cooling or a deeper downturn. The jobs report also included revisions showing job losses in June, the first since 2020, intensifying worries about economic growth. Following the report, President Trump criticized Federal Reserve Chairman Jerome Powell, urging faster action on interest rates.