Here are our top 10 things to watch in the stock market Friday

The August jobs report had a significant impact on the markets, causing bond yields to jump and stocks to dip. This reaction suggests that investors are reevaluating their expectations for future interest rate moves, as a strong labor market can give the central bank room to tighten policy. The increase in bond yields, in particular, is noteworthy, as it can affect borrowing costs and influence the overall direction of the economy.

The jobs report showed a robust gain in employment, which is a positive sign for the economy, but also raises concerns about inflation and potential interest rate hikes. This is a key concern for bond investors, as higher interest rates can lead to lower bond prices and higher yields. The market is now likely to focus on the upcoming consumer price index (CPI) release, which will provide further insight into inflationary pressures.

Looking ahead, investors will be watching to see how the market reacts to the increased likelihood of interest rate hikes. The Federal Reserve's next policy meeting is scheduled for later this month, and the strong jobs report has increased the chances of a rate hike. Bond investors will be closely monitoring the yield curve and the overall direction of interest rates, as well as any economic data releases that could influence the Fed's policy decisions.

Originally reported by cnbc.com. BondNews adds analysis for finance & markets readers.