Wall Street ended lower on Friday (Saturday AEST) after stronger-than-expected jobs data boosted expectations that the United States Federal Reserve could raise interest rates at its September policy meeting.
All three major U.S. indexes declined in a broad sell-off ahead of the three-day Labor Day weekend.
The Dow Jones Industrial Average fell 272.5 points, or 0.5%, to 53,413.6, while the S&P 500 dropped 29.3 points, or 0.4%, to 7,718.4. The Nasdaq Composite declined 77.1 points, or 0.3%, to 26,507.0.
For the week, the three major indexes were little changed.
The Labor Department's August employment report showed the U.S. economy added 162,000 jobs last month, nearly three times the 56,000 consensus forecast.
Payrolls for June and July were also revised higher by a combined 55,000.
Labour market participation increased, while the unemployment rate held steady at 4.1%.
While a stronger-than-expected jobs report would normally signal a healthy economy, investors interpreted the data as increasing the likelihood that the data-dependent Fed will raise rates at the conclusion of this month's meeting to prevent war-related energy price pressures from feeding into broader, more persistent inflation.
Financial markets are now pricing in a 58.3% probability of a 25-basis-point rate hike at the Fed's September meeting, up from 49.4% on Thursday, according to the CME Group FedWatch Tool.
Among individual movers, Lululemon Athletica tumbled 17.4% after the activewear retailer cut its full-year profit and revenue forecasts.
Adobe dropped 6.7% after announcing that longtime chief executive Shantanu Narayen would be succeeded by company insider Anil Chakravarthy.
Meanwhile, U.S. credit reporting agencies also fell after Federal Housing Finance Agency Director Bill Pulte said on Thursday he had directed Fannie Mae and Freddie Mac to approve all lenders to use the VantageScore credit scoring system.
Fair Isaac lost 16.7%, TransUnion declined 5.9%, and Equifax fell 6.4%.
On the bond markets, 10-year and two-year Treasury yields rose 0.3% and 0.8%, respectively, to 4.784% and 4.374%.
