Labor Day Eve: Hot Jobs Report Stirs Rate Hike Fears, Markets Close Lower

The August jobs report delivered a massive upside surprise, with the U.S. economy adding 162,000 jobs—nearly triple the economists' forecast of 58,000. Unemployment held steady at 4.1%, and prior months were revised upward by a combined 55,000. This signals underlying economic resilience and suggests that recent softness was temporary. For corporate earnings and consumer strength, this is unambiguously good news.

The Bear Case

The market's reaction was a classic...