Job growth slowed and unemployment ticked higher than expected in July, the Labor Department reported Friday, sending US equities tumbling and increasing odds of a September interest rate cut. 

Unemployment increased by 0.2% from June to 4.3% in July, marking the highest reading since October 2021. Nonfarm payrolls grew by 114,000 last month, missing analysts’ expectations of 185,000. 

Stocks initially fell sharply, with the S&P 500 and Nasdaq Composite indexes losing 2.4% and 3.1%, respectively, over the day an hour after the report was released. Both indexes posted modest recoveries later in the session. The S&P 500 was trading 2.1% lower and the Nasdaq Composite was down 2.5%…

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