Surprising Jobs Report Sparks Interest Rate Hike Fears

Stocks fell on Wall Street after a surprisingly strong jobs report sparked concerns that the Federal Reserve may raise interest rates later this month.

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

The government reported that U.S. employers added 162,000 jobs to their payrolls last month, exceeding expectations.

This unexpected job growth could give the Federal Reserve more flexibility to increase its benchmark short-term interest rate to combat inflation.