Surprise Jobs Report Sparks Rate Hike Fears as Stocks Wobble

U.S. stocks wobbled on Friday after a strong jobs report unexpectedly revealed that employers added 162,000 jobs in August, sparking concerns of an interest rate hike by the Federal Reserve.

The S&P 500 fell 0.4%, while the Dow Jones Industrial Average dropped 0.5% and the Nasdaq composite gave back 0.3%. The Labor Department's report was a surprise to forecasters, who had predicted only 65,000 new jobs.

Federal Reserve policymakers will meet in less than two weeks to discuss interest rates. Terry Sandven, chief equity strategist at U.S. Bank Asset Management Group, said the jobs report 'leans toward' an interest rate hike, but noted it's not a 'foregone conclusion.'