Wall Street’s dilemma: How Fed rate cut hopes clashed with slowing jobs growth

The stock market kicked off the historically tough month of September on a rocky note as Wall Street speculated about the magnitude of the Federal Reserve's next interest rate decision. Initially, the S & P 500 and Nasdaq hit all-time intraday highs Friday morning as investors digested a slower-than-expected August jobs growth . The weak data bolstered the case for the central bank to cut rates 25 basis points later this month, and as many as two more similar moves before year-end. The 10-year Treasury yield dropped below 4.1% to its lowest level since April. The "bad news is good news trade" was on. Shortly after the open, however, the market reversed lower as those rate cut hopes were overshadowed by concerns about the pace of the slowing labor market. Nonfarm payrolls increased by just