US STOCKS-Wall St dips as jobs report stronger than expected
* May payrolls increase by 280,000 vs est 225,000
* Average hourly earnings increase
* Indexes down: Dow 0.32 pct, S&P 0.33 pct, Nasdaq 0.51 pct (Updates to open)
By Tanya Agrawal
June 5 (Reuters) - U.S. stocks slipped on Friday after data showed that U.S. job growth accelerated sharply in May and wages picked up, signs of momentum in the economy that could revive expectations of an interest rate hike in September.
Nonfarm payrolls increased by 280,000 last month, the largest gain since December, and above the 225,000 that economists polled by Reuters had expected. Average hourly earnings grew by eight cents.
The better-than-expected jobs report signaled that growth was gaining traction, but Wall Street took a dim view as a potential rate hike could increase the cost of borrowing.
Bolstered by cheap credit, the U.S. stock market is trading at record levels but has stayed within a narrow trading range as investors look for more clarity on the economy.
The Fed has kept overnight rates near zero since December 2008 and the economy's sluggishness had left markets doubting whether the Fed would be able to raise rates this year. Continuación...