US stocks open lower after strong August jobs report; Dow falls 147 points

US stocks opened lower on Friday, September 4, after a stronger-than-expected August jobs report pushed Treasury yields higher and raised expectations that the Federal Reserve could keep interest rates elevated for longer.

The Dow Jones Industrial Average fell 147 points, or 0.3%, while the S&P 500 slipped 0.1%. The Nasdaq Composite was little changed, up 0.1%.

US employers added 162,000 jobs in August, well above economists’ expectations for a gain of 53,000. The unemployment rate held steady at 4.1%, in line with forecasts, while payroll figures for June and July were revised higher. The stronger labour-market data has tempered expectations of near-term monetary easing.

Treasury yields climbed following the report, with the two-year yield rising to its highest level since January 2025. Fed funds futures were pricing in a 58% probability of an interest-rate hike at the central bank’s September meeting, according to the CME FedWatch Tool.

Despite Friday’s early weakness, the major indexes remained on track for weekly gains. The Dow was set to end the week little changed, while the S&P 500 was headed for a gain of about 0.4% and the Nasdaq Composite was on pace to advance 0.8%.

US stock futures mixed as investors brace for August jobs report; Lululemon tumbles 20%

US stock futures were mixed on Friday, September 4, as investors awaited the August jobs report for fresh clues on the health of the labour market and the Federal Reserve's interest-rate path.

Futures tied to the Dow Jones Industrial Average fell 46 points, or 0.1%, while S&P 500 futures edged 0.1% higher. Nasdaq-100 futures gained 0.5%.

The muted moves came after a strong session for Wall Street on Thursday, when all three major averages advanced. The Dow jumped more than 600 points, or 1.2%, for its best session since August 4.

All eyes on US jobs

Investors are now focused on the August nonfarm payrolls report, due at 8:30 a.m. ET.

Economists surveyed by Dow Jones expect the US economy to have added roughly 53,000-55,000 jobs in August, following an unexpected decline of 23,000 in July. The unemployment rate is expected to rise to 4.1%.

Recent data has painted a picture of a labour market that is growing slowly but has so far avoided a sharp deterioration.

Friday's report could therefore influence expectations for what the Federal Reserve does next with interest rates. A significantly weaker-than-expected jobs number could strengthen the case for lower rates, while a stronger reading could reduce the urgency for the central bank to ease policy.

US Treasury yields pulled back after Federal Reserve Governor Christopher Waller said he would be inclined to support keeping the benchmark interest rate at its current 3.5%-3.75% range at the Fed's September 15-16 meeting.

Lululemon plunges 20% after weak outlook

Lululemon Athletica was among the biggest premarket movers, with its shares tumbling around 20% after the athletic-apparel maker issued a weaker-than-expected outlook and cut its full-year guidance.

The company expects third-quarter earnings of 93 cents to 98 cents a share, well below the $2.40 expected by analysts surveyed by LSEG.

Lululemon forecast third-quarter revenue of $2.29 billion to $2.32 billion, compared with analysts' expectations of $2.53 billion.

The company also missed revenue expectations for the second quarter, reporting $2.42 billion against the $2.46 billion analysts had expected.

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