Indices fall to start in September ahead of jobs and economic data

• September trading got off to a bearish start as US indices slipped on Tuesday morning.

• Investors are gearing up for key labor data due on Friday.

• Weaker-than-expected non-farm payrolls could force the Fed to cut rates more aggressively.

Trading in September began with major indices falling as the market repositioned itself ahead of several key dates coming up during the week.

While hopes of a soft landing helped the S&P 500 and Dow Jones Industrial Average post their fourth straight monthly gain in late August, all eyes are now on manufacturing and labor data to see if that trend is still making headway.

On Tuesday, US manufacturing data will give investors insight into how well the economy is holding up, but the real test will come on Friday, when the August non-farm payrolls report is scheduled to be released.

Economists forecast that U.S. employers added 162,000 jobs last month, suggesting the unemployment rate will fall modestly from 4.3 percent to 4.2 percent.

However, if the release shows a deterioration in the labor force that pushes the unemployment rate significantly higher, it could force the Federal Reserve to cut more than expected during the September 18 policy meeting. As shown after weaker-than-expected jobs data in July, this result could weigh on markets and fuel fears that the US economy will slow.

Additionally, September is traditionally a challenging month for the stock market, and investors may need to brace for more volatility ahead.

Here’s where U.S. indices stood shortly after the opening bell at 9:30 a.m. Monday:

Here’s what else is going on:

In commodities, bonds and crypto:

• West Texas Intermediate crude fell 2.72% to $71.66 a barrel. Brent crude, the international benchmark, fell 2.88% to $75.29 a barrel.

• Gold remained basically flat at $2,495.05 an ounce.

• The 10-year Treasury yield fell five basis points to 3.854%.

• Bitcoin rose 0.27% to $59,256.

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