Stock markets fall as US jobs report stokes rate concerns [Video]

Stock markets retreated Thursday as a hotter-than-expected US jobs report raised concerns that the Federal Reserve would keep interest rates higher for longer.

Wall Street fell at the open after official data showed the world’s biggest economy added 272,000 jobs last month, up from 165,000 in April and the highest level since December.

“The payrolls figure was a shock to the market,” said Kathleen Brooks, research director at trading platform XTB.

The US central bank has held rates at a 23-year high in recent months in hopes of easing demand to rein in inflation sustainably.

With the economy still adding more jobs than anticipated, analysts expect the Fed to hold off rate cuts for a while longer.

Brooks said the US jobs report lowered the chance of a September rate cut by the Fed to 50 percent from 60 percent previously, and only one reduction is expected this year.

“The …