Covid-19: US unemployment rate drops by more than expected, to 8.4%

The US labor-market rebound extended for a fourth month in August, offering hope that the economy can continue to recover despite a persistent pandemic and Washington’s standoff over further government aid to jobless Americans and small businesses.

Nonfarm payrolls increased by 1.37 million, including the hiring of 238,000 temporary Census workers, according to a Labor Department report Friday. The unemployment rate fell by more than expected, by almost 2 percentage points, to 8.4%.

The dollar and yields on 10-year Treasuries climbed after the report, while the S&P 500 rose at the open before declining amid a rout in