US Stocks Fall as Strong Jobs Report Raises Rate Hike Expectations

US stock markets ended lower on Friday after the Labor Department reported that employers added 162,000 jobs last month, exceeding expectations of 65,000.

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

Fed policymakers have been weighing whether to raise the benchmark short-term interest rate to fight inflation, which has been running hot due to rising oil prices amid the U.S. war with Iran and remains above 3 percent.

The jobs report was seen as a mixed signal for the Fed, balancing job growth against fighting inflation.