Dow Falls as Rate-Hike Bets Rise After Strong Jobs Report

The Dow Jones Industrial Average fell for a second consecutive session on Friday, dropping 517.88 points to 51,005.18 by 9:35 a.m., pressured by selling in consumer stocks amid rising expectations of an early Federal Reserve interest rate hike. The October jobs report showed nonfarm payrolls increased by 165,000, surpassing the 59,000 forecast, while the unemployment rate improved to 4.1% and average hourly earnings exceeded expectations. Fed funds futures indicated an 80% probability of a rate hike at December's meeting, up from under 70% the prior day. Consumer stocks like Home Depot, Walmart, and McDonald's declined, while Nvidia and Cisco rose. Texas Governor-elect Gina Hinojosa proposed halting data center construction, adding to AI infrastructure concerns following Wednesday's semiconductor selloff.