A surprisingly strong August jobs report pushed stocks lower, because it raises the odds the Fed hikes interest rates — bad news for investors, and not much better for workers.

• The economy added 162,000 jobs in August, far more than expected and far above June and July.
• Strong job numbers make a rate hike more likely, and rates drive stocks more than company results do.
• Odds of a hike at the September 16 meeting rose to roughly a coin toss, up from just under half.
• Wages are growing slower than prices, so people are still falling behind on living costs.
• Most of the new jobs were low-paid restaurant and bar work plus government hiring, while tech and finance cut jobs.

Outlook: The September 11 inflation report will decide whether the Fed raises rates, and AI-driven job cuts look set to grow into 2027.