The US economy added just 22,000 jobs in August, which came in below expectations and down from 79,000 in July. Revisions also showed June posted a job loss of 13,000 which is the first negative print since 2020. The unemployment rate rose to 4.3% from 4.2%. Sectors exposed to tariffs, such as manufacturing and wholesale trade, were particularly weak, while healthcare hiring slowed. Markets responded by increasing bets that the Federal Reserve will cut interest rates at its upcoming September meeting, with some investors now expecting a larger 0.5 percentage point move. This would likely prove positive for US equity markets. At present, US Treasury yields fell sharply before rebounding slightly, while equity markets ended mixed, with the S&P 500 down 0.3% and the small-cap Russell 2000 up 0.5%.