Updated Friday at 3:01 p.m. PT
Major stock indexes dropped sharply Friday, with the Dow Jones industrial average tumbling 666 points amid signs that wage growth is finally picking up.
The 2.6 percent drop in the Dow came as the Labor Department reported that 200,000 jobs were added to the economy last month, which was stronger than expected, and the unemployment rate stayed at 4.1 percent — the lowest since 2000.
But worries about inflation grew when the report showed that average hourly wages grew 2.9 percent from a year ago — the largest increase since June 2009. Yields for 10-year Treasurys hit four-year highs Friday.
All this sets the stage for the Federal Reserve to continue raising interest rates, with the next hike expected in March. That would make credit cards, car loans and mortgages more expensive.