Wall Street opens mixed after U.S. job growth beats expectations

Wall Street opened mixed on Friday after U.S. employment growth far exceeded expectations for August, renewing fears that the Federal Reserve could raise interest rates at its next meeting.

The Dow Jones Industrial Average fell 0.29% to 53,531 points at the open. The S&P 500 lost 0.12% to 7,738, while the Nasdaq gained 0.05% to 26,597.

The Labor Department’s Bureau of Labor Statistics reported 162,000 new jobs in August, well above the 53,000 expected by analysts. The unemployment rate remained at 4.1%. Employment figures for June and July were also revised upward, adding a combined 55,000 jobs compared with the initial reports.

The strong figures offered good news for households but worried analysts who fear the U.S. economy could overheat and push inflation higher. High inflation, rapid job growth and the continuation of the war in the Middle East have increased pressure on the central bank to raise borrowing costs before the end of the year.

Inflation fears following renewed hostilities between the United States and Iran triggered selling in U.S. Treasury bonds during the week. At the opening, the two-year yield stood at 4.374%, the 10-year yield at 4.766% and the 30-year yield at 5.231%. West Texas Intermediate crude fell 1.98% to $89.49 a barrel, while gold dropped 1.69% to $4,463 an ounce and silver declined 2.24% to $66.18.