Dow falls after much stronger-than-expected jobs report: Live updates

The Dow Jones Industrial Average fell on Friday as August's hotter-than-expected payrolls reading increased expectations that the Federal Reserve could raise interest rates at its next meeting.

The 30-stock Dow was down 226 points, or 0.4%. The S&P 500 slid 0.2%, while the Nasdaq Composite traded up 0.1%.

Nonfarm payrolls grew 162,000 last month, much more than the 53,000 that economists polled by Dow Jones expected. The unemployment rate held steady at 4.1%, as expected. On top of last month's gain, figures for both June and July saw upward revisions.

Treasury yields rose following the report, with the 2-year yield hitting its highest level since January 2025. Expectations that the Fed could hike rates in a couple weeks increased, as fed funds futures traders are now pricing in a 58% chance of a hike, per the CME FedWatch tool.

Odds were at 49.4% a day ago. "A monster jobs report for August reminds us that this labor statistic has become highly volatile while nudging up the probability of a September hike slightly," said Bradford Smith, portfolio manager at Janus Henderson Investors. Now, the debate surrounding the Fed "will sit handily on the incoming inflation data," he added.

"After a hawkish appearance from Chairman Warsh at Jackson Hole last week, there is a clear bias at the Fed to take action if the incoming data does not show further progress on disinflation."

The three major averages rose on Thursday, catching a tailwind as Treasury yields pulled back after Federal Reserve Governor Christopher Waller said he would be "inclined to support" keeping rates at their current target range of 3.5% to 3.75% at the central bank's Sept. 15-16 meeting. However, the Dow is still heading for a drop of 0.2% this week.

The S&P 500 is on track for a 0.3% advance in the period, while the Nasdaq is on pace for a 0.7% gain. Trump calls for 'lower' rates after latest jobs reading President Donald Trump on Friday praised the result of the August jobs reading and threatened to cut off trade with certain countries if the Federal Reserve doesn't slash interest rates in the report's wake.

"Great jobs number just announced, breaking all estimates (except mine!) by double and triple - And you haven't seen anything yet!" he wrote in a Truth Social post on Friday.

"Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!" "We should have the LOWEST RATE of any country in the World, like 'the old days,'" he also wrote, before adding, "LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT." — Sean Conlon Dow opens lower The Dow Jones Industrial Average began Friday's session lower.

The blue-chip index fell 187 points, or 0.3%, just after 9:30 a.m. ET. The S&P 500 dropped 0.2%, while the Nasdaq Composite was relatively unchanged. — Sean Conlon Gold and gold miners take a tumble Gold (DEC) has hit a session low of $4,419 and is down 2.1% on the week in premarket trading Friday, on pace for its second consecutive weekly loss.

The VanEck Gold Miners ETF GDX is down 3.76%, on pace for its first negative day in three.

Shares of gold mining and production companies mirrored the decline, with Silvercorp Metals, Eldorado Gold, Franco-Nevada, Kinross all down more than 3.5% in the premarket. — Tobias Burns U.S. economy adds 162,000 jobs in August Nonfarm payrolls rose a seasonally adjusted 162,000 for the month while the unemployment rate, as expected, held steady at 4.1%, the Bureau of Labor Statistics reported Friday.

Economists surveyed by Dow Jones had been looking for a payrolls increase of 53,000. Read more here. — Jeff Cox Lululemon shares drop following latest quarterly results Lululemon shares plummeted 20% in the premarket on Friday after the company posted a disappointing outlook.

The company anticipates third-quarter earnings to come in between 93 cents and 98 cents per share and revenue to be between $2.29 billion to $2.32 billion. Analysts surveyed by LSEG had called for $2.40 in earnings per share and $2.53 billion in revenue. On top of that, it cut its full-year guidance.

For the second quarter, Lululemon's revenue of $2.42 billion also missed the consensus estimate of $2.46 billion. — Laya Neelakandan and Sean Conlon DocuSign rises after earnings Shares of software company DocuSign were higher by just under 1% after it reported better-than-expected financial results after the bell on Thursday.

DocuSign reported adjusted earnings and revenue that came in above expectations for the second quarter, while its guidance for the current quarter regarding revenue beat came about in-line with estimates, according to FactSet. The company also hiked its revenue and non-GAAP operating margin forecast for the full year.

The stock was at one point in 2026 off more than 38% for the year, as investors worried about how artificial intelligence may disrupt the Software-as-a-Service business model.

However, since late June, DocuSign has risen more than 55%, as of Thursday's close. — Davis Giangiulio Volkswagen jumps 6% on plans to cut 50,000 jobs amid tariffs, China competition Volkswagen shares jumped on Friday after it announced plans to slash a further 50,000 jobs as part of a historic transformation plan amid intensifying tariff pressures and competition from China.

Europe's biggest carmaker said Thursday that its supervisory board had approved its Future Plan 2030, comprising 12 initiatives that would result in the "most strategically profound transformation program" in the group's 89-year history. Treasury yields steady ahead of jobs figures Treasury yields steadied in early trade as investors await the latest U.S. nonfarm payrolls and unemployment data, due at 8:30 a.m.

E.T. The key 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was unchanged at 4.7541%. The shorter-dated 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, was also holding steady at 4.3390%.

The longer-dated 30-year Treasury note yield, which is often sensitive to geopolitical events, was also holding firm at 5.2328%. — Hugh Leask Global bond sell-off likely not over yet, Mohamed El-Erian tells CNBC Investors should expect the sell-off of global government bonds to continue, renowned economist Mohamed El-Erian told CNBC on Friday. "I don't see any appetite in the U.S. for immediate fiscal consolidation.

So I suspect we will continue to see upward pressures on yields," he told CNBC's Carolin Roth at the Ambrosetti Forum in Cernobbio, Italy. He also said the U.S. Treasury had taken "a step too far" with its recent market intervention. Read the full story here. — Chloe Taylor Asia-Pacific markets close mostly higher Asia-Pacific markets closed mostly in the green on Friday.

South Korea's Kospi jumped 1.64% to end the trading day at 6,687.21, while the small-cap Kosdaq rose 2.95% to 813.5. Japan's Nikkei 225 added 1.26% to 65,020.94, while the Topix index was little changed at 4,103.23. Mainland China's CSI 300 closed the day marginally lower at 4,548.05, while Hong Kong's Hang Seng index was 1.82% higher as of its last hour of trade.

Australia's S&P/ASX 200 closed 0.16% lower at 9,005.9. — Lee Ying Shan European markets open lower; Volkswagen gains after confirming mass job cuts Europe's Stoxx 600 index opened 0.18% lower on Friday, after snapping a three-session losing streak on Thursday. Sectors were mainly in the red, with chemicals leading losses, down 1%.

Autos bucked the trend as shares of Volkswagen popped 7%, after the German carmaker's board approved plans to cut up to 50,000 more jobs, taking total potential cuts in its turnaround strategy to 100,000. — Jenni Reid European gas prices trading near three-year high Natural gas prices in Europe are hovering near a three-year high, after hitting their highest level early 2023 on Wednesday.

Gas traded on the Dutch TTF, the European benchmark, closed above 73 euros ($84.90) per megawatt-hour on Wednesday, with front-month futures contracts last seen trading at about 71.30 euros – marking an intraday decline of just over 3%. Europe's gas stores are currently only two-thirds full, according to the Aggregated Gas Storage Inventory database.

Energy prices on the continent spiked in the wake of Russia's full-scale invasion of Ukraine in 2022, and have also come under pressure through the U.S.-Iran war. Many European nations are net importers of energy commodities. — Chloe Taylor Oil rises amid worries over lingering Iran-U.S. tensions Oil rose Friday, amid lingering concerns over supply disruptions as tensions between Iran and the U.S continued on.

Futures for international benchmark Brent crude for November delivery gained 0.41% at $95.91 a barrel. U.S. West Texas Intermediate futures for October advanced 0.69% at $91.93 per barrel. Military hostilities in the region have escalated in recent days, reviving fears of a return to a broader war, and extended disruption to energy flows via the Strait of Hormuz.

"Physical flows in the Strait of Hormuz remain constrained, with traffic levels below normal," Quoc Dat Tong, senior financial markets strategist at Exness, told CNBC Thursday.

"At the same time, ongoing efforts to sustain energy exports from the region help limit the upside bias for crude prices," Quoc added. — Justina Lee Treasury yields steady as traders weigh Waller’s signal for a September pause Treasury yields were stable across the curve on Friday, as traders continued to assess remarks by Federal Reserve Governor Christopher Waller that he was leaning toward keeping interest rates unchanged at the central bank's next policy meeting in two weeks.

The 10-year Treasury note yield, the main benchmark for mortgages, was little changed at 4.766%. The longer-dated 30-year Treasury yield dropped about 1 basis point to 5.241%. The shorter 2-year Treasury note yield, which tends to tracks short-term Federal Reserve interest rate decisions, was 1 basis point higher at 4.344%.

Interactive Brokers in a note on Friday said Waller's remarks added to a broader dovish shift among policymakers, following similar comments from New York Fed President John Williams on easing inflation pressures.

The brokerage said expectations for lower rates were supporting Treasuries, particularly shorter-dated maturities that are more sensitive to Fed policy, while a rise in Challenger job cuts also boosted demand for fixed-income assets. — Lee Ying Shan Bitcoin hovers near $81,000 level with U.S. crypto legislation in focus Bitcoin slid 0.79% to $80,903 on Friday, after topping $81,000 the day before to hit its highest level in nearly four months.

Ether last traded 0.15% lower at $2,510.64. Further gains would depend on sustained institutional participation and greater clarity on the Federal Reserve's rate path, said Diana Pires, chief business officer at sFOX, adding that strong spot bitcoin ETF inflows and increased trading activity suggested the rally has broadened beyond the short squeeze that initially led to gains.

The crypto industry's biggest legislative bet is hanging in the balance this month, with little confidence a key proposed bill will make it past the finish line.

The upcoming vote on the Clarity Act, which would establish a federal framework for crypto markets, represents a major test for an industry that has spent years lobbying Washington for clearer rules governing digital assets. — Lee Ying Shan Japanese yen holds near multi-month highs as expectations for intervention, BOJ rate hike rise The Japanese yen was trading at 155.89 against the dollar on Friday, after appreciating to its strongest since February on Thursday, as traders weighed the possibility of further Japanese currency intervention and rising expectations for Bank of Japan rate hikes.

The yen jumped more than 2% against the greenback on Thursday, at one point touching 155.28 per dollar, according to LSEG data. JPMorgan still expects the yen to weaken to around 160 against the dollar, as Japanese authorities seek to maintain currency stability while the BOJ continues to raise rates.

"We remain neutral on the Japanese yen and expect USDJPY to hover around 160 as authorities prioritize currency stability. This view assumes the BOJ delivers 3-4 rate hikes over the next 12 months, taking policy rates to around 2%," the bank wrote in a note on Friday. — Lee Ying Shan South Korea's Kospi, Japan's Nikkei 225 open higher Asia-Pacific markets opened mostly higher Friday.

South Korea's Kospi jumped 1.32%, while the small-cap Kosdaq was 1.99% higher. Japan's Nikkei 225 added 0.25%, but the Topix index dipped 0.46%. Australia's S&P/ASX 200 rose 0.14%. — Lee Ying Shan Asia-Pacific markets are set to track Wall Street gains Asia-Pacific markets were set to climb Friday, tracking Wall Street gains overnight as Treasury yields eased.

Japan's Nikkei 225 was poised to rise, with the Chicago and Osaka futures contracts last at 64,665 and 64,660 respectively, compared with the index's previous close of 64,214.48. Hong Kong's Hang Seng index futures were at 25,421, higher than the index's last close of 25,213.31.

Futures for Australia's S&P/ASX 200 last traded at 9,037, compared with the index's previous close of 9,020.1. — Lee Ying Shan Stocks making the biggest moves after hours Several stocks made dramatic moves in extended trading as a slate of companies posted their latest earnings reports: Lululemon Athletica — Shares of the sportswear manufacturer tanked 18% after the company posted a glum forecast for the current quarter.

Lululemon called for earnings in a range of 93 cents to 98 cents per share on revenue of $2.29 billion to $2.32 billion. Analysts were looking for $2.40 per share and $2.53 billion. Docusign — The software company jumped more than 4% after it reported an earnings and revenue beat in its second-quarter financial report.

Docusign also hiked the high end of its full-year revenue guidance, as well as its full-year forecast for its non-GAAP operating margin. Read more about movers in extended trading here. — Darla Mercado Stock futures open little changed Thursday night Stock futures opened little changed on Thursday night. Futures linked to the Dow Jones Industrial Average slipped 10 points, or 0.02%.

S&P 500 futures lost 0.06% and Nasdaq-100 futures were down 0.1%. — Darla Mercado