US Stocks Fall as Strong Jobs Report Fuels Rate Hike Fears

The US stock market declined on Friday after a surprisingly strong jobs report raised the prospect 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 jobs report showed that employers added 162,000 jobs last month, exceeding the expected 65,000 forecasters had predicted.

This development has increased the likelihood of an interest rate hike later this month to combat inflation, which has been running high due to rising oil prices amid the US-Iran conflict and remains above 3%. The Fed's goal is to cool inflation down to a target of 2%.