NEW YORK (TheStreet) -- Stock futures extended losses on Friday after a blowout nonfarm payrolls report for May heralded fears the Federal Reserve will feel more confident raising rates sooner than later.
S&P 500 futures were down 0.33%, Dow Jones Industrial Average futures fell 0.29%, and Nasdaq futures declined 0.35%.
The U.S. economy added 280,000 jobs in May, the Labor Department said Friday, further proof a weak March number was an aberration in a soft first quarter. Economists had expected the economy to add 210,000 jobs in May. April's jobs number was revised down to 221,000 from 223,000.
The unemployment rate ticked up to 5.5% from 5.4%. Hourly earnings rose 0.3% in May, adding to a 2.3% annual rate. The labor force participation rate increased to 62.9% from 62.8%.
"Any doubts about lingering economic weakness in the second quarter, at least as it relates to the labor market, were certainly erased with the release of the May employment report," said Dan Greenhaus, BTIG Research chief strategist. "[Treasury] yields are higher across the board... as investors are clearly coming around to the realization the Fed will almost surely raise rates in 2015."
Treasury yields spiked on the jobs report with the U.S. 10-year yields jumping to a year-to-date high of 2.435%. Treasuries are seen as a safe haven against likely downward pressure for equities ahead of a Fed rate hike.
Stocks sank deep into the red on Thursday as markets sorted through a range of macro worries, including nerves over the jobs report. The S&P 500 and Dow lost nearly 1%. Click here for more.