From the Desk - Economic Commentary
Scott Goedken, Director of Institutional Strategies - 9/4/2026
U.S. stocks are mixed and Treasury yields moved broadly higher this morning following a stronger-than-expected August employment report.
The August Employment Situation Report showed nonfarm payrolls increased by 162,000, well above expectations for a gain of approximately 56,000. The report also included substantial upward revisions to prior months. June payrolls were revised higher by 11,000 to a gain of 31,000, while July was revised from a reported decline of 23,000 jobs to a gain of 21,000. Combined, the two reports were 55,000 higher than previously reported.
The unemployment rate was unchanged at 4.1% in August, in line with consensus expectations. The labor force participation rate edged up to 61.6% from 61.4% in July, and average hourly earnings in August increased 0.3%, up 3.1% from a year ago.
The stronger-than-expected payroll gain and upward revisions to June and July suggest labor market conditions remain on firmer footing than recent data had indicated. The market will now turn its focus to next week's inflation reports, which are likely to play a significant role in shaping expectations for the September FOMC meeting and rate decision.
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