The Dow Jones Industrial Average fell more than 200 points today after the U.S. reported stronger-than-expected employment figures, which could support a rate hike by the Federal Reserve this month. As of 9:04 p.m. Thai time, the Dow was down 215.11 points, or 0.40%, to 53,471.00 points. The market was also pressured by a surge in the yield on the 2-year U.S. Treasury note, which rose to 4.425%, the highest level since January 2025. The U.S. Labor Department reported that nonfarm payrolls rose by 162,000 in August, well above analysts' expectations of 55,000. The unemployment rate held steady at 4.1%, and average hourly earnings increased 3.1% year-over-year, above the forecast of 3.0%. The latest CME Group FedWatch Tool indicates that investors now see a 60.2% probability of a 0.25% rate hike by the Fed at its September meeting, up from 49.4% yesterday.
Strong jobs data raises probability of Fed rate hike, pushing policy rate expectations up.
2-year Treasury yield surged to 4.425% on increased rate hike odds, reflecting higher yield.
Rate hike expectations and strong data push long-term yields higher, lowering bond prices.
