(Updates with index/price moves, macroeconomic data and company news from the first paragraph.)

US equity indexes fell after the economy added almost triple the jobs expected in August, boosting bets favoring an interest rate increase as early as this month.

The Nasdaq Composite declined 0.2% to 26,540.1, the S&P 500 retreated 0.3% to 7,726.2, and the Dow Jones Industrial Average declined 0.5% to 53,421.3 after midday Friday.

Total nonfarm payrolls rose by 162,000 last month, the Bureau of Labor Statistics said Friday, compared with a 55,000 increase projected in a Bloomberg-compiled survey. July's tally was revised to show a gain of 21,000 from a 23,000 fall, while June's increase was adjusted upward by 11,000.

The probability of the Fed raising its target rate by 25 basis points to 3.75%-4.0% in September jumped to 60% after midday from 49% a day ago, according to the CME FedWatch tool. The remaining likelihood is that policy will remain on hold.

President Donald Trump called on the Federal Reserve to lower interest rates, saying the US economy is a stronger credit than it was previously. In a post on Truth Social, Trump said job growth exceeded estimates and argued that a "strong country means a lower interest rate."

In company news, Lululemon Athletica (LULU) reported softer-than-planned fiscal Q2 results and lowered its fiscal 2026 guidance again, prompting a cautious stance on the stock, as the delayed start of incoming CEO Heidi O'Neill leaves the company a "rudderless ship" and risks further competitive disintermediation amid deteriorating macro conditions, Oppenheimer said Friday. Shares sank 18%, the worst performer on the S&P 500.