Closing Bell: Stocks End Week Mixed as Jobs Report Raises Fed Rate Hike Odds

U.S. stocks were mixed in choppy trading on Friday with higher-than-expected nonfarm payrolls data raising expectations that the Fed could raise interest rates this month.   

The S&P 500 (SPX) was down 0.38%, while the Nasdaq-100 (NDX) rose 0.21%, and the small-cap Russell 2000 (RUT) rose 0.25%. But the Dow Jones Industrial Average ($DJI) was down 0.51%.  

For the week, the S&P 500 was up 0.09%, the Dow was down 0.27%, the Nasdaq-100 (NDX) rose 0.38%, and the Russell 2000 rose 0.11%.  

August’s nonfarm payrolls came in at triple the expected number, a sign of a hot labor market that could bolster inflation. That increased the probability of a September Fed interest rate hike, which could tame inflation; the CME FedWatch tool put the probability at nearly 60% on Friday, up from below 50% Thursday. Payrolls grew 162,000 last month versus the 55,000 economists expected. The unemployment rate was steady at 4.1%.  

The rising price of crude oil created headwinds for stocks. The U.S. benchmark WTI price rose more than 9% this week to above $91 a barrel. Yields also rose, pressuring equities, with the benchmark 10-year Treasury yield up 5 basis points this week to 4.78%.  

Here are four things to know from Friday's trading session:  

• Lululemon Athletica (LULU) was the biggest S&P decliner Friday, with a slide of more than 17%. It reported weak fiscal Q2 results and lowered its fiscal 2026 guidance again, reports said. The delayed start of incoming CEO Heidi O'Neill leaves the company rudderless in the face of competition and difficult macro conditions, according to Oppenheimer research quoted in media reports. See LULU Hits 8-Year Low After Earnings: More Downside Ahead in Turnaround Story? 
• SanDisk (SNDK), up more than 11% Friday, was the biggest S&P advancer. The memory and storage sector is benefiting from a tightening NAND pricing cycle and strong demand, according to reports. See MU "Fantastic" Standing in AI Memory, SNDK Edge Over Competitors 
• The National Highway Traffic Safety Administration (NHTSA) is investigating the Tesla (TSLA) rollout of steering-wheel-free Cybercab robotaxis. Shares of Tesla fell 5.9% Friday but rose 1.5% for the week. See Importance of Next Week's CPI, TSLA Cybercab Launch & ZS Earnings Slow 
• As Wall Street and gadget enthusiasts anticipate the big Apple (AAPL) annual product reveal to be held next Wednesday, Citi analysts said they expect the first Apple foldable iPhone could be priced starting at $2,000, or more. Apple shares fell 2.5% Friday and were flat for the week. See The Big 3: AAPL, NVDA, CVX | Trading 360 

Tom White and Angrej Singh contributed to this article 

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