Dow falls 300 points after much stronger-than-expected jobs report: Live updates

BREAKING: Dow falls over 380 points after August payrolls smash expectations, boosting bets the Fed could hike rates at its next meeting. The 2-year yield hits its highest since January 2025.

Wall Street just punished America for hiring too many people. The Dow dropped over 380 points Friday after August payrolls came in at 162,000, triple what economists expected. You can see the mood on the floor here, and it isn't celebration.

Here's why good news is landing like a brick. A hot labor market gives the Fed cover to raise rates at its meeting on September 15. Futures traders now put the odds of a hike at 58 percent, up from 49 just a day ago. The 2-year Treasury yield hit its highest level since January 2025, and Chairman Warsh already sounded hawkish at Jackson Hole.

President Trump had thoughts, naturally. He praised the jobs number, then threatened to stop trading with deficit countries unless the Fed cuts rates. So the White House wants cheaper money while the data screams the opposite.

Eleven days until the Fed decides, and every inflation print between now and then just became appointment viewing.

This is Sara White, reporting for HIT.