Stocks Crash as Strong Jobs Report Puts Rate Hike Back on Table

U.S. stocks fell sharply after a surprisingly strong jobs report revealed employers added 162,000 jobs last month, increasing prospects of an interest rate hike by the Federal Reserve.

The S&P 500 dropped 0.4%, while the Dow Jones Industrial Average and Nasdaq composite declined by 0.5% and 0.3%, respectively.

Fed officials are expected to raise rates before year's end to combat inflation, which has been running above the central bank's 2% target due to rising oil prices amid the U.S.-Iran conflict.