Nasdaq plunges nearly 4% as US stocks sell off after strong jobs report solidifies outlook for another big rate hike

• US stocks plunged on Friday after a strong September jobs report solidified an outsized Fed rate hike in November.
• The US economy added 263,000 jobs last month, and the unemployment rate fell to 3.5%.
• "Today's job report indicates the job market keeps chugging along - and the Fed has more work to do," CIBC's David Donabedian said.

US stocks plunged on Friday after a stronger-than-expected September jobs report all but solidified another outsized interest rate hike by the Federal Reserve in November.

The US economy added 263,000 jobs last month, ahead of consensus expectations for 255,000. The unemployment rate fell to 3.5% from its prior month reading of 3.7%. Expectations were for the rate to remain unchanged.

Much of the job gains were in healthcare as well as leisure and hospitality, with average hourly earnings also moving higher in September. The report gave credence to the Fed's continued resistance to calls that policymakers should pivot away from interest rate hikes. The CME Fed Watch Tool put the odds of a 75-basis-point rate hike at 82%, a 7% jump from yesterday's expectations.

"Today's job report indicates the job market keeps chugging along - and the Fed has more work to do," CIBC Private Wealth's David Donabedian told Insider. "This is not good news for the Fed which wants to see a slowing in the jobs market to ease wage growth and inflation pressure... The Fed is not done tightening the screws on the economy, creating persistent headwinds for the equity market."

Here's where US indexes stood shortly at the 4:00 p.m. ET close on Friday:

• S&P 500: 3,639.63, down 2.80%
• Dow Jones Industrial Average: 29,296.86, down 2.11% (630.08 points)
• Nasdaq Composite: 10,652.40, down 3.80%

Here's what else is happening today:

• Credit Suisse jumped 7% on Friday after the embattled bank launched a $3 billion bond-buyback program. The move was seen as a sign of strength just one week after concerns grew of a potential Lehman moment for the Swiss bank.
• Another major crypto hack was pulled off this week, this time on the Binance-linked blockchain. The hack is estimated to have drained $570 million worth of Binance coin.
• Investors piled into cannabis stocks after President Joe Biden announced federal pardons for simple marijuana possession.
• Wharton professor Jeremy Siegel and Guggenheim's Scott Minerd warned investors that the Fed's actions are likely to "break" something that could ultimately lead to a recession.
• Russian seaborne oil exports have fallen to their lowest level in a year, a sign that Moscow may be struggling as it leans more on Asian buyers ahead of price cap plans.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil jumped 4.64% to $92.55 per barrel. Brent crude, oil's international benchmark, rose 3.69% to $97.90.
• Gold fell 0.85% to $1,706.10 per ounce.
• The yield on the 10-year Treasury rose five basis points to 3.87%.
• Bitcoin fell 2.70% to $19,448, while ether fell 2.27% to $1,324.