Dow Jones Industrial Average futures fell on Friday as August’s hotter-than-expected payrolls reading increased expectations that the Federal Reserve could raise interest rates at its next meeting. Futures linked to the Dow were down 151 points, or 0.3%. S&P 500 futures slid 0.2%, while Nasdaq-100 futures were 0.1% higher. Nonfarm payrolls grew 162,000 last month, much more than the 53,000 that economists polled by Dow Jones expected. The unemployment rate held steady at 4.1%, as expected. On top of last month’s gain, figures for both June and July saw upward revisions. Treasury yields were broadly higher across the curve following the report, with the 2-year yield hitting its highest level since January 2025. Expectations that the Fed could hike rates in a couple weeks increased, as Fed funds futures traders are now pricing in a 58% chance of a hike, per the CME FedWatch tool. Odds were at 49.4% a day ago. The key 10-year Treasury note yield—the main benchmark for mortgages, auto loans, and credit card debt—was up less than 4 basis points at 4.802%. The shorter-dated 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, rose more than 7 basis points to 4.425%. It was the highest level for the yield since January 2025. The longer-dated 30-year Treasury note yield, which is often sensitive to geopolitical events, was little changed at 5.263%. “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,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “If those come in cooler than expected, the Fed will likely feel comfortable discounting potentially inflationary signals coming out of the labor market.” In Thursday’s regular trading, the three major averages rose. The 30-stock Dow gained more than 600 points, or 1.2%, and posted its best day since Aug. 4. The S&P 500 climbed more than 1%, while the Nasdaq Composite advanced 1.4%. U.S. stocks caught a tailwind as Treasury yields pulled back after Federal Reserve Governor Christopher Waller said he would be “inclined” to support holding rates at their current target range of 3.5% to 3.75% at the central bank’s Sept. 15-16 meeting. Stocks are on pace for a winning week. The S&P 500 is on track for a 0.5% advance, while the Nasdaq is on pace for a 0.7% gain. The Dow is heading for a 0.2% jump. In Asia, South Korea’s Kospi jumped 1.64% on Friday while Japan’s Nikkei 225 added 1.26%. Mainland China’s CSI 300 closed the day marginally lower at 4,548.05, while Hong Kong’s Hang Seng index was 1.82% higher as of its last hour of trade. Oil prices eased on Friday but were still headed for a weekly gain as rising U.S.-Iran tensions heightened concerns over Middle East supply risks. Brent crude futures were down 47 cents, or 0.49%, at $95.05 a barrel by 0813 GMT, while U.S. West Texas Intermediate crude futures lost 64 cents, or 0.70%, to $90.66. However, Brent rose 6.5% for the week, its biggest weekly gain since August 17, while WTI climbed 8.8%, its strongest weekly performance since July 13. Gold steadied on ​Friday but was on track ​for a modest ​weekly gain as investors scaled back bets on a September interest rate hike ahead of U.S. non-farm payrolls data that could shed further light on the Federal Reserve’s policy path. Spot ⁠gold ‌was little changed at $4,474.78 per ounce by 0910 GMT, ⁠while U.S. gold futures for December delivery dropped 0.4% to $4,521.40 per ounce. However, bullion was on track for a small weekly rise, having rebounded from a three-week low hit on Wednesday, with prices getting a ‌further boost from Fed Governor Christopher Waller’s comments.