Wall Street ends lower as solid jobs data fuels hawkish Fed bets - reuters.com

“Wall Street slipped on Thursday as robust U.S. employment figures—showing a 162,000‑job gain in August—reinforced expectations of further Federal Reserve rate hikes. The Dow Jones Industrial Average fell 0.6%, the S&P 500 slid 0.5%, and the Nasdaq dropped 0.4%, reflecting investor concern that higher borrowing costs could dampen corporate earnings and consumer spending. The data also narrowed the gap between the Fed’s policy rate and the 5% inflation target, prompting a more hawkish stance in Fed minutes. Expert Analysis: The tightening cycle may soon slow the pace of wage growth, but it also signals that the Fed is confident enough in the labor market to sustain higher rates, which could moderate inflation without triggering a recession. If rates rise further, borrowing costs for mortgages and auto loans could climb, affecting consumer spending and housing demand.”