The Bureau of Labor Statistics announced on Friday that US nonfarm employment increased by 130,000 in August, while unemployment remained at 3.7%.

The manufacturing sector added 3,000 jobs - fewer than expected - likely as a result of shrinkage in exports to China as trade tensions continue.

Most job increases were in government, health care and services.

Employment in leisure and hospitality remained essentially unchanged from July.

The Federal Reserve is expected to cut interest rates by 25 basis points at its 17-18 September.

Stocks are on track for a sizable weekly gain on hopes of lower interest rates and progress on resolving trade issues.