U.S. August Jobs Report Exceeds Expectations, Boosting Fed Rate Hike Bets

The U.S. economy added 162,000 nonfarm payrolls in August, significantly surpassing the consensus estimate of 56,000, according to data released on September 5, 2026. This stronger-than-expected job growth has increased market expectations for a Federal Reserve interest rate hike at its upcoming September 16 meeting. Following the report, Treasury yields and the dollar rose, while U.S. stock indexes ended lower. Short-term interest-rate futures indicated a 58.4% to 60.4% likelihood of a rate hike.