Stocks sink as investors anticipate higher interest rates
NEW YORK (AP) — U.S. stocks and bonds fell sharply as a strong jobs report led investors to anticipate higher U.S. interest rates.
The Standard & Poor's 500 lost 29 points, or 1.4 percent, to close at 2,071 Friday. It was the worst drop for the index since Jan. 5.
The Dow Jones industrial average lost 278 points, or 1.5 percent, to 17,856. The Nasdaq fell 55 points, or 1.1 percent, to 4,927.
The Dow and S&P 500 closed at record highs on Monday.
Bond yields rose after the Labor Department reported a surge in hiring last month. That raised the likelihood that the Federal Reserve could raise rates as soon as this summer.
Apple rose following news that the company would join the Dow, replacing AT&T. AT&T fell 1.5 percent.