Stocks Ended Higher as Payrolls Report Fell Short

U.S. stocks closed higher on Friday, as a weaker-than-expected payrolls report tamped down expectations for a September rate hike from the U.S. Federal Reserve. The Dow Jones Industrial Average rose 72.66 points, or 0.39%, to 18,491.96. The S&P 500 gained 9.12 points, or 0.42%, to 2,179.98. The Nasdaq Composite added 22.69 points, or 0.43%, to 5,249.90. For the week, both the Dow and the S&P rose 0.5% while the Nasdaq ended with a gain of 0.6%.

U.S. nonfarm payrolls rose by 151,000 jobs in August after an upwardly revised 275,000 increase in July, with job cuts in manufacturing and construction, the Labor Department said. Economists polled by Reuters had forecast payrolls rising by 180,000 last month.

The U.S. economy appears strong enough to warrant significantly higher interest rates, Richmond Federal Reserve Bank President Jeffrey Lacker said on Friday. Lacker, who is not a voting member of the U.S. central bank’s rate-setting committee this year, said he still favors raising rates sooner than later and that the Fed’s last policy meeting in July would have been a “good time” to tighten policy.