S&P 500 Plunges as Strong Jobs Data Fuels Rate Hike Bets

The S&P 500 fell 0.4% to 7,718.41 on Friday after the US added 162,000 jobs in August, nearly three times the 56,000 expected.

This strong hiring data is a major shift for the Federal Reserve, which now faces pressure to raise interest rates despite previous concerns about recession.

The Fed's September 15-16 meeting is now seen as having a 58% probability of a quarter-point increase, up from about 49% before payrolls.

The rise in oil prices also adds to the inflationary pressures, with Brent crude approaching $97 and WTI above $92 after the US and Iran attacked vessels around the Strait of Hormuz over the weekend.