Surprise Jobs Report Sends Stocks Lower Amid Interest Rate Hike Fears

U.S. stocks fell on Friday after the government reported that employers unexpectedly added 162,000 jobs last month.

The surprise increase in hiring could give the Federal Reserve leeway to raise interest rates at their next policy meeting in less than two weeks to fight inflation.

The Labor Department's report exceeded forecasters' expectations of 65,000 new jobs and revised previous months' numbers upward by 55,000.

With a strong economy and rising oil prices amid the U.S. war with Iran, the Fed faces a delicate balance between supporting job growth and fighting inflation.