Strong Jobs Report Sends Stocks Sliding Amid Interest Rate Hike Fears

U.S. stocks fell on Friday after a surprisingly strong jobs report raised prospects of an interest rate hike by the Federal Reserve.

The Labor Department reported that employers added 162,000 jobs last month, exceeding the forecasted 65,000. The unemployment rate remained steady at 4.1%.

Market analysts expect the Fed to raise interest rates before the year ends to combat inflation, which has been above 3%. The strong jobs market could give policymakers more leeway to increase rates at their next meeting in less than two weeks.

Raising interest rates can help tame inflation but may also slow economic growth. The yield on the 10-year Treasury rose to 4.78%, and the yield on the 2-year Treasury increased to 4.37%.