Surprise Drop In U.S. Jobs Shifts Fed Rate Expectations

The U.S. economy unexpectedly lost 23,000 jobs in July, a surprisingly weak report that quickly shifted expectations for the Federal Reserve’s next move on interest rates. A Dow Jones poll of economists had forecast a median gain of 83,000 jobs, putting the headline number 106,000 below expectations.

Now add in revisions that brought the May and June numbers down by 103,000 from previously reported levels, along with an earlier revision that brought May down an additional 43,000...