US stocks tumble after another strong jobs report bolsters Fed's hawkish position

• US stocks tumbled on Friday after a strong September jobs report bolstered the Fed's hawkish stance.
• The US economy added 263,000 jobs in September and the unemployment rate fell to 3.5%.
• The better-than-expected jobs report all but assures another 75 basis point rate hike in November.

US stocks erased pre-market gains and tumbled on Friday following a stronger-than-expected September jobs report.

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

Much of the job gains were in the leisure and hospitality and health care sector, and average hourly earnings also moved higher in September. The report all but assured another outsized 75 basis point rate hike by the Fed at its upcoming November FOMC meeting, as it continues to try and tame elevated inflation.

The CME Fed Watch Tool put the odds of a 75 basis point rate hike at 80%, a 5% jump from yesterday's expectations.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

• S&P 500: 3,699.36, down 1.21%
• Dow Jones Industrial Average: 29,662.38, down 0.88% (264.56 points)
• Nasdaq Composite: 10,887.21, down 1.68%

Here's what else is happening this morning:

• 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-based 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.
• Cannabis stocks extended their gains from Thursday's trading session 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.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil jumped 1.16% to $89.48 per barrel. Brent crude, oil's international benchmark, rose 1.22% to $95.57.
• Gold fell 0.55% to $1,712.30 per ounce.
• The yield on the 10-year Treasury rose seven basis points to 3.89%.
• Bitcoin fell 1.78% to $19,632, while ether fell 1.70% to $1,332.