August’s much stronger-than-expected payroll growth signals renewed labor-market resilience, reducing pressure for monetary easing and lifting September rate-hike expectations toward 60%. Rising 2-year Treasury yields reflect expectations of tighter policy, increasing the discount rate for equities. However, relatively limited equity declines suggest investors are absorbing the stronger-growth/higher-rates outlook rather than pricing an immediate economic downturn. Upcoming inflation data will be crucial in determining whether this pressure persists.