U.S. equity futures fell Friday after a stronger-than-expected August jobs report raised expectations for a Federal Reserve interest rate hike.

Dow Jones Industrial Average futures dropped 185 points, a 0.3 percent decline. S&P 500 futures fell 0.2 percent, while Nasdaq-100 futures rose 0.1 percent.

Nonfarm payrolls grew 162,000 last month, nearly triple the 53,000 jobs economists had anticipated. The unemployment rate held steady at 4.1 percent. The Bureau of Labor Statistics also upwardly revised June and July payroll figures.

Treasury yields surged across the curve. The 2-year yield hit its highest level since January 2025.

Fed funds futures traders now price in a 58 percent chance of a rate hike at the September 15-16 meeting, up from 49.4 percent Thursday, according to the CME FedWatch tool.

"An upside surprise in payrolls will likely ramp up concerns about a rate hike," Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, said. "The outcome depends on next week's inflation numbers. Cooler figures could allow the Fed to discount labor market signals."

Thursday saw sharp gains: the Dow climbed 1.2 percent—its best day since Aug. 4—while the S&P 500 rose 1 percent and the Nasdaq Composite jumped 1.4 percent. That rally came after Federal Reserve Governor Christopher Waller said he would support holding rates at their current 3.5 percent to 3.75 percent range through mid-September.

Despite Friday's futures weakness, U.S. stocks remain on pace for a winning week. The S&P 500 is tracking a 0.5 percent gain, the Nasdaq a 0.7 percent advance, and the Dow a 0.2 percent rise.

Asian markets rallied Friday. South Korea's Kospi jumped 1.64 percent, and Japan's Nikkei 225 added 1.26 percent. Hong Kong's Hang Seng index rose 1.82 percent, though mainland China's CSI 300 closed marginally lower.

European equities were mixed, with the Stoxx 600 trading marginally higher.

Gold futures fell sharply. December gold hit a session low of $4,419 in premarket trading, down 2.1 percent on the week and headed for its second straight weekly loss. The VanEck Gold Miners ETF (GDX) fell 3.76 percent. Mining stocks including Silvercorp Metals, Eldorado Gold, Franco-Nevada, and Kinross all declined more than 3.5 percent in premarket trading.