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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuThe U.S. jobs market forgot about the dog days of August and saw scorching growth. The Bureau of Labor Statistics said nonfarm payrolls rose 162,000 last month . That was far more than the 53,000 expected by economists polled by Dow Jones. Jobs growth for July and June was also revised higher. That, however, did little to dissuade investors from keeping expectations for a Federal Reserve rate hike elevated. According to the CME Group’s FedWatch tool, traders still see a 58% chance of a quarter-point rate increase in less than two weeks. Stock futures pulled back following the report, while Treasury yields rose. Here’s what strategists, investors and economists around Wall Street had to say: Tim Urbanowicz, chief investment strategist, Innovator ETFs from Goldman Sachs Asset Management: “Today’s report was strong, and we could see markets take a react first, ask questions later approach. But once the dust settles, we think investors will realize the broader trend of labor market rebalancing is still intact.” Jerry Tempelman, VP of economic and fixed income research at Mutual of America Capital Management: “Solid job creation, particularly in healthcare and private sector employment, supports the idea that the demand for labor is accommodating the stagnating supply. All in all, today’s numbers do little to alter the market presumption that the Fed will raise short-term interest rates at its upcoming monetary policy meeting.” Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management: “An upside surprise in payrolls will likely ramp up concerns about a rate hike, but that outcome is in the hands of next week’s inflation numbers. If those come in cooler than expected, the Fed will likely feel comfortable discounting potentially inflationary signals coming out of the labor market.” Ryan Weldon, portfolio manager at IFM Investors: “This print will keep all of the focus from the Fed and the market on next week’s inflation print and will likely give the Fed more room to hike rates. If inflation does not show a convincing move lower, the Fed will need to take action to earn the credibility that the market afforded Chairman Warsh after his Hawkish comments at Jackson Hole.” Jeff Schulze, head investment strategist at Franklin Templeton Institute: “This print was unambiguously strong with surging private payrolls, upward prior month revisions, and solid breadth with the diffusion index reaching its best level since 2024. … Today’s print is modestly negative for equity markets, as the valuation pressure from higher yields is being partially offset by the resilience of the labor market.” Eric Merlis, co-head of global markets at Citizens: “Chairman Warsh’s decision to look past labor-market softness at Jackson Hole and focus on inflation has been vindicated, and this report gives the Fed more ammunition to tighten in September. Still, with average hourly earnings showing no signs of a wage-price spiral, the picture is not clear-cut. If anything, today’s data made the Fed’s job harder.” Brad Conger, Chief Investment Officer at Hirtle: “If you squint, you might see the outlines of the AI displacement. Sectors with high AI adoption (information, financial) were weaker. Sectors that are building/equipping/powering data centers (construction, manufacturing, utilities) were stronger. That should support incomes in the lower leg of the K.” Bradford Smith, portfolio manager at Janus Henderson Investors: “After a hawkish appearance from Chairman Warsh at Jackson Hole last week, there is a clear bias at the Fed to take action if the incoming data does not show further progress on disinflation. This print nudges the urgency of taking action slightly.” Chris Zaccarelli, chief investment officer for Northlight Asset Management: “The big issue for markets is whether or not the Federal Reserve will raise interest rates later this month and although inflation has been an issue, the job market has been more variable, and for some members of the FOMC, it has been something they had kept an eye on and has been one reason they weren’t raising rates more quickly to fight inflation.” Jennifer Timmerman, senior investment strategy analyst at Wells Fargo Investment Institute: “August’s blowout jobs report provided evidence of a stable labor market heading into the fall, supporting resilient consumer spending but also raising market expectations for a near-term Fed rate hike amid unacceptably high inflation.” — CNBC’s Michelle Fox, Alex Harring and Christina Cheddar-Berk contributed reporting.Read More