Weekly Market Recap Week Ended September 4th
August Hiring Rebounds
The U.S. labor market showed renewed strength in August, with employers adding 162,000 jobs during the month. That represented a significant improvement from July’s revised gain of 21,000 jobs and came in well above economists’ expectations. August also marked the strongest month for job creation in five months, while the unemployment rate remained unchanged at 4.1%.
Strong Jobs Report Shifts Rate Expectations
The stronger-than-anticipated employment report caused investors to reassess the outlook for interest rates ahead of the Federal Reserve’s September meeting. Following the jobs data, futures markets indicated approximately a 58% chance of a quarter-point rate increase, compared with a 42% probability that rates would remain unchanged. Prior to the employment report, expectations had been much more evenly divided.
Stocks Finish August Higher
Major U.S. stock indexes delivered positive results in August. The S&P 500 gained approximately 2.6% for the month, marking its fourth monthly advance in five months. The technology-heavy NASDAQ led the major indexes with a 3.9% increase, while the Dow Jones Industrial Average rose 1.3%.
Inflation Data Takes Center Stage
Investors will turn their attention to the upcoming Consumer Price Index report as the Federal Reserve prepares for its September 16 policy decision. The report will provide policymakers with another important look at inflation trends. The previous CPI reading showed annual inflation at 3.4% in July, easing slightly from 3.5% in June.
Source: Manulife John Hancock Investments, Weekly Market Recap – Week Ended September 4, 2026.
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