U.S. employers added 187,000 jobs during the month of July, less than the 200,000 economists were expecting and below the 209,000 created in June. 

The unemployment rate dipped to 3.5%.

Last month, the unanimous decision by the Federal Reserve to raise interest rates put the key benchmark federal funds rate at a range of 5.25% to 5.5%, the highest since 2001, further restricting economic activity as the borrowing costs for homes, cars and other items march higher.

It marks the 11th rate increase aimed at combating high inflation since policymakers began tightening in March 2022. 

The data follows Fitch’s downgrade of U.S. credit, which is creating a fresh wall of worry about the economy and financial markets, with the S&P 500 headed for a weekly loss.