US STOCKS-Wall St mixed after jobs growth signals Sept rate hike
* May payrolls increase by 280,000 vs est 225,000
* Average hourly earnings increase
* Traders betting Fed will start raising rates in Oct
* Indexes: Dow down 0.04 pct, S&P up 0.04 pct, Nasdaq up 0.16 pct (Adds details, changes comment and updates prices)
By Tanya Agrawal
June 5 (Reuters) - U.S. stocks were mixed in choppy trading on Friday after data showed that U.S. job growth rose sharply in May and wages picked up, signs of momentum in the economy that revived expectations of an interest rate hike in September.
The strong jobs data indicated that growth was gaining traction, but Wall Street took a dim view as a rate hike could increase the cost of borrowing.
Traders are now betting the Fed will start raising interest rates as soon as October, and will make a second increase early next year.
The Fed has kept overnight rates near zero since December 2008 and the economy's sluggishness had raised doubts the Fed would be able to raise rates this year. Continuación...