A surprisingly strong August jobs report pushed most US stocks down because traders now expect the Fed to raise interest rates, though chipmakers ran the other way and surged.

• The Dow, S&P 500 and Nasdaq all fell, while the Philadelphia semiconductor index jumped over 3% and TSMC's US-listed shares rose nearly 3%.
• August hiring came in far above what the market expected, with unemployment steady at 4.1%.
• Good jobs news was read as bad market news: traders now put the odds of a Fed rate hike within weeks at 58%.
• Government bond yields rose after the report, with the 2-year hitting its highest level since early 2025.
• Tesla fell nearly 6% despite unveiling its Cybercab, its worst day since late July; Apple and Microsoft also dropped, while Nvidia and Meta edged up.

Outlook: US markets are closed Monday for Labor Day, and attention turns to whether the Fed follows through with a rate hike at its next meeting.