Market Open: Stocks Fall, August Hiring Strong, Bond Yields Rise • 9/4/26

0:01CNBC Business News Update Market Open. I'm Jessica Ettinger. Wall Street pulling back out of the gate this morning after yesterday's gains. The August jobs report came in super strong, better than expected. But that now has investors worried it could sharpen the Fed's focus on high inflation since the job market's OK. And this could mean a higher chance of an interest rate increase later on this month. Higher rates mean borrowing's more expensive, hurting corporate profits. and stocks. The Dow down 87 points, being led lower by shares of Salesforce down about one and a half percent. The S &P 500 index down three points.

0:41The Nasdaq is down 10 points. Look at that August jobs report. Hold on to your seats, folks. Up 162K, 162 ,000. That's basically three times what expectations are. We're cooking in Greece on this report. 162 would be the best level going back to March of this year. CNBC's Rick Santelli. Here's more from CNBC senior economics reporter Steve Liesman. This is a good report, but I think it has to be put into context of the revisions. It is so volatile these days. There's a lot of bounce back in here. The leisure and hospitality was minus 75 the prior two months. Now it's plus 62. Government had been minus 50 the prior month.

1:28Now it's plus 35. So what do you do in a case like this? You take a step back and you look at the three-month average. It's 71 ,000, right in the range of a normal rate that should keep the unemployment rate where it is right now. Strong jobs number, not great for stocks. Here's Nuveen's Sarah Malik on CNBC. Well, this number is a relief for the jobs market, But it's not a relief for investors because I think it is going to slowly drag up the odds for a Fed 25 basis point hike in September. And also it's going to drag up yields. Both of those are negative for equities. Bond yields were ticking higher on that jobs report, holding back some investors from stocks.

2:03Economist Mohamed El-Erian told CNBC today that the bond sell-off is not over yet. Markets will continue to see upward pressures on yields. Following a broad sell-off of global government bonds, he said three countries, the UK, Japan, and France, are vulnerable to sovereign debt problems. Diesel fuel hit a fresh record high in the U.S. as the Russian assault on Ukraine and the U.S. war with Iran have knocked out refineries and pushed up inflation worries. Truckers in the U.S. are now paying an average of$5.85 a gallon nationwide, according to AAA, a nearly 60 % increase over the same period last year.

2:43Diesel was only$3.71 a gallon last year. Diesel is the fuel most embedded in the economy, and its high price can get passed on to consumers. Diesel powers trucks, trains, ships, and farm equipment. Everything you buy pretty much got there using diesel. Inflation is in focus. The latest read comes a week from today with the August CPI, the Consumer Price Index. A hot report could mean an interest rate increase by the Fed later this month, which makes borrowing more expensive and hurts corporate profits and can send stocks lower. It also hits consumers with mortgages, auto loans, and credit card debt and more.

3:26The average pay raise for workers in the U.S. next year will be about 3.2 percent based on merit in a new Mercer Quick Pulse U.S. compensation planning survey of a thousand organizations. USA Today says using the July inflation rate of 3.4 percent, Americans will likely again be underwater next year with pay not keeping up with prices. Jessica Ettinger, CNBC. Hey, Fidelity. How can I remember to invest every month?

3:58Jessica Ettinger: With the Fidelity app, you can choose a schedule and set up recurring investments in stocks and ETFs. Oh, that sounds easier than I thought. You got this. Yeah, I do. Now, where did I put my keys? You will find them where you left them. Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC, member NYSE SIPC.