US stocks slipped on Friday after the government's August jobs report showed…

US stocks slipped on Friday after the government's August jobs report showed employers added 162,000 jobs, nearly three times the roughly 55,000 economists expected. Normally more jobs would be good news, but investors read it as bad news this time: a stronger job market gives the US Federal Reserve (the central bank that sets interest rates) more room to raise interest rates instead of holding them steady, since it doesn't have to worry as much about hurting employment. The Dow Jones Industrial Average fell 271.86 points, or 0.51%, to 53,414.25; the S&P 500 slid 0.38% to 7,718.60; and the Nasdaq Composite dipped 0.29% to 26,506.99. The odds traders see of a rate hike at the Fed's September 15-16 meeting jumped to roughly 58-60%. The pullback followed a strong Thursday session, when stocks rallied after a Fed official suggested he'd support holding rates steady. Two company stories stood out Friday: Tesla shares dropped after its long-awaited "Cybercab" robotaxi update underwhelmed investors and drew scrutiny from federal safety regulators, and athletic-apparel maker Lululemon tumbled after cutting its sales and profit outlook for the second time this year.

Philippine stocks rose for a second straight session on Friday, with the PSEi (the main index tracking the country's most actively traded companies) gaining 21.18 points, or 0.35%, to close at 6,090.60. The lift came after government data showed August inflation (the pace at which everyday prices rise) eased to 6.1% from July's 6.2%, the fourth straight month of slowing prices. Still, trading stayed cautious and thin, with total value traded coming in well below the recent daily average, as investors weighed how much room the Bangko Sentral ng Pilipinas (BSP, the Philippine central bank) has to ease its tight policy while inflation remains well above its 2%-4% target. Mining and oil shares led the day's gains, rising 0.75% as a group, followed by holding-firm stocks. Advancing stocks outnumbered decliners 108 to 93. Even with the market's gain, the Philippine peso fell to a fresh record low of P62.59 per US dollar, weighed down by the stronger US dollar following that same day's US jobs report.

The very same US jobs report that dragged Wall Street lower on Friday is also part of the reason the Philippine peso sank to a new record low that same day, even as the local stock market rose. Here's the connection: a surprisingly strong US jobs report makes it more likely the US Federal Reserve keeps interest rates higher for longer. Higher US rates make the US dollar more attractive to hold than currencies like the peso, so money tends to flow toward the dollar and away from emerging-market currencies. That's a big part of why the peso closed at P62.59 per dollar, a fresh record low, on the same day the PSEi actually gained ground on good local inflation news. A weaker peso cuts both ways for ordinary Filipinos. On one hand, it makes imported goods more expensive, especially fuel, which can push local prices back up even as the official inflation rate is cooling. On the other hand, it's good news for the many Filipino families who receive remittances from relatives working abroad, since each US dollar sent home converts into more pesos. It's also a reminder for anyone with PH-based investments that global events, like a single US economic report, can move local markets and the currency just as much as local news does.