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Hiring burst sends stocks, bonds sharply lower as investors anticipate higher US rates

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NEW YORK — U.S. stocks and bonds fell sharply as a strong jobs report led investors to anticipate higher U.S. interest rates.

The Standard & Poor's 500 lost 29 points, or 1.4 percent, to close at 2,071 Friday. It was the worst drop for the index since Jan. 5.

PHOTO: Traders gather at the post of specialist Anthony Matesic, right, on the floor of the New York Stock Exchange, Friday, March 6, 2015. Stocks opened lower on Friday as another strong U.S. jobs report raised the likelihood that the Federal Reserve would start to raise interest rates later this year. (AP Photo/Richard Drew)
Traders gather at the post of specialist Anthony Matesic, right, on the floor of the New York Stock Exchange, Friday, March 6, 2015. Stocks opened lower on Friday as another strong U.S. jobs report raised the likelihood that the Federal Reserve would start to raise interest rates later this year. (AP Photo/Richard Drew)

The Dow Jones industrial average lost 278 points, or 1.5 percent, to 17,856. The Nasdaq fell 55 points, or 1.1 percent, to 4,927.

The Dow and S&P 500 closed at record highs on Monday.

Bond yields rose after the Labor Department reported a surge in hiring last month. That raised the likelihood that the Federal Reserve could raise rates as soon as this summer.

Apple rose following news that the company would join the Dow, replacing AT&T. AT&T fell 1.5 percent.

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