Dow falls 150 points after strong July jobs report hints at more aggressive Fed

Stocks fell on Friday after a much better-than-expected July jobs report, showing a strong labor market would mean more interest rate hikes from the Federal Reserve.

The Dow Jones Industrial Average fell 145 points, or 0.41%.

The S&P 500 dropped 0.56% and the Nasdaq Composite dropped 0.83%.

The unemployment rate also ticked down to 3.5%, down from an estimate of 3.6%.

Anyone who 'jumped on the Fed is going to pivot next year and start cutting rates' will have to get off at the next station, because that's not in the cards.

"It's clearly a situation where the economy isn't creaking or heading into a recession here and now."

Job growth was expected to slow as the Fed continues to raise interest rates to cushion rising inflation, but this report shows the labor market is still running hot.

Wage growth also rose above estimates, by 0.5% for the month and 5.2% higher than a year ago, indicating that high inflation is still a problem.