Dow opens 150 pts lower as strong jobs data boosts Fed rate hike bets

• Short-term interest-rate futures implied a 58-65% chance of a September rate hike, up from roughly 50% before the jobs report, while two-year Treasury yields hit their highest level since January 2025
• The Dow fell 153 points at open, while the S&P 500 dropped 0.10% and Nasdaq remained flat, though all three indexes remained on track for weekly gains of 0.2-0.7%
• Credit reporting stocks plunged on housing policy news: Fair Isaac fell 20%, TransUnion dropped 9%, and Equifax declined 7.9% after regulators directed Fannie Mae and Freddie Mac to approve lenders using VantageScore

Market Summary: Strong Jobs Data Pressures Equities, Lifts Rate Hike Odds

Key Market Movement:

U.S. stocks opened lower on Friday, September 4, 2026, with the Dow Jones falling 153 points, the S&P 500 down 0.10%, and the Nasdaq Composite flat at open. The decline followed a robust jobs report that significantly increased Federal Reserve rate hike expectations.

Employment Data:

August jobs data exceeded expectations, though specific job creation numbers were not fully detailed in the article. The unemployment rate held steady at 4.1%, matching forecasts. June and July employment figures were revised upward, signaling continued labor market strength.

Fed Rate Hike Probability:

Traders now price in a 58-65% chance of a September rate hike, up from approximately 49-55% before the jobs report. Two-year Treasury yields surged to their highest level since January 2025 as investors recalibrated monetary policy expectations.

Individual Stock Declines:

• Fair Isaac (FICO): -20%
• TransUnion (TRU): -9%
• Equifax (EFX): -7.9%
• Adobe: -6.8% following CEO transition announcement (Shantanu Narayen stepping down, replaced by Anil Chakravarthy)

Credit reporting stocks fell after U.S. housing official Bill Pulte directed Fannie Mae and Freddie Mac to approve lenders using VantageScore.

Weekly Performance:

Despite Friday's weakness, major indexes remained on track for weekly gains: S&P 500 +0.5%, Nasdaq +0.7%, Dow +0.2%.

Market Outlook:

Investors await next week's Consumer Price Index (CPI) and Producer Price Index (PPI) data, critical for the Fed's September 15-16 policy decision. The strong employment report increases the significance of these inflation readings in determining monetary policy direction. September's historically weak seasonal performance adds another layer of market uncertainty.