U.S. stocks rally as August unemployment rate rise seen keeping Fed on hold

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U.S. stocks rise Friday after the August jobs report underlines market expectations the Fed will leave rates unchanged.

U.S. stocks rose Friday after August jobs data reassured investors that the Federal Reserve won’t take interest rates much higher.What’s happening The S&P 500 fell 1.8% in August, while the Nasdaq shed 2.2%, the first monthly decline for both indexes since February. The Dow fell 2.4% after back-to-back monthly gains.

Hourly wages rose 0.2% in August. The increase in pay over the past year fell a tick to 4.3%. Fed officials want to see wage growth slow to prepandemic levels of 3% or less. “Earnings were soft as well; only rising 0.2%. But the rise in the unemployment rate will steal the show,” he said.

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