US stocks slipped in early trading on Friday as a stronger-than-expected jobs report fueled speculation that the Federal Reserve will raise interest rates this month. By 10:13 a.m. in New York, the S&P 500 had fallen 0.3%, while the Dow Jones Industrial Average dropped 0.5%. In contrast, the Nasdaq 100 managed a modest gain of 0.3%.

The dip interrupted a two-day rally that had pushed the S&P 500 close to its all-time high. The latest non-farm payrolls figures showed a significant surge in job creation, while the unemployment rate held steady.

"Today's report was robust, and the market may take a 'react first, ask questions later' approach," said Tim Urbanowicz of Goldman Sachs Asset Management's Innovator ETFs. "But once the dust settles, we think investors will realize the broader trend of labor market rebalancing remains intact."

Bret Kenwell of eToro noted that the August jobs report was a step in the right direction, even if some investors might interpret it through the lens of "good news is bad news." He added, "No matter how investors view the labor market, the Fed sees it as broadly consistent with full employment, and today's report could reinforce that view. In the Fed's eyes, the labor market remains solid, which means inflation continues to be the bigger concern."