The unemployment rate fell to the lowest level in almost three years - hitting 4.3 percent in July.
The sell-off is a blow to Americans with retirement savings in 401 plans, which tend to be invested in major stock market indices. It will also impact interest rates, which set a guidepost for credit card and mortgage rates.Read More Chase to ban credit card payments for controversial service 401 retirement savingsMany 401 workplace retirement accounts are invested in the major stock market indices.
Citigroup investors said they expected half-point rate cuts in September and November and a quarter-point cut in December, Bloomberg reported.JPMorgan's Michael Feroli forecast the same rate cuts, but also went a step further, suggesting that there is 'a strong case to act' before the next Fed meeting in September.
Car loans, student loans, and mortgages, are not directly influenced by the benchmark rate, but would be affected in turn.