The August jobs report came in far stronger than economists expected, which is good news for the economy but may push back hopes for a rate cut.

• Hiring came in at 162,000 jobs versus expectations near 55,000 — a four-standard-deviation beat.
• Recent months were revised up, not down, and the three-month hiring average is the best in over a year.
• More people came back looking for work, and the job gains were big enough to absorb them and keep unemployment near 4.1%.
• Bond yields jumped on the news, denting the case for a September rate cut and adding pressure to AI-related funding.
• The weak spot: the household survey is wildly volatile, so one bad month could send unemployment up fast.

Outlook: The hiring trend now points up rather than down, but a reversal in the household numbers next month would quickly change the story.