US Stocks Fall as Strong Jobs Report Raises Rate Hike Prospects

The US stock market fell after a strong jobs report showed that employers unexpectedly added 162,000 jobs last month.

The increase in hiring is likely to give the Federal Reserve more leeway to raise interest rates at their next policy meeting in less than two weeks.

Fed Chair Kevin Warsh said last week that inflation had not shown sufficient improvement and that the central bank might have 'more work to do', a sign he is weighing a rate increase.

The yield on the 10-year Treasury rose to 4.78% from 4.77%, while the yield on the 2-year Treasury rose to 4.37% from 4.34%.