RPT-US STOCKS-Wall Street slides as investors fear inflation
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* Nonfarm payrolls increase 428,000 in April
* Under Armour tumbles on dismal 2023 profit outlook
* Coinbase dropped to lowest level since market debut
* Indexes down: S&P 0.9%, Dow 500 0.7%, Nasdaq 1.3%
By Echo Wang
May 6 (Reuters) - U.S. stock indexes fell on Friday as investors worried over soaring Treasury yields and the prospect of more Fed rate hikes.
"The solid jobs number today confirms the economy is on solid footing. Earnings have been strong, the employment backdrop is strong. There will likely not be a recession this year, which is a good thing," said Ryan Detrick, chief market strategist for LPL Financial.
"But the uncertainty over a 40-year-high inflation and ... a hawkish Fed are still what investors are faced with the remainder this year."
The Labor Department's report showed nonfarm payrolls increased by 428,000 jobs in April, versus expectations of 391,000 job additions, underscoring the economy's strong fundamentals despite a contraction in gross domestic product in the first quarter.
The unemployment rate remained unchanged at 3.6% in the month, while average hourly earnings increased 0.3% against forecast of a 0.4% rise.
Ten of the 11 major S&P sectors declined, with energy outperforming with a 1.5% gain as oil prices climbed on supply concerns.
"Oil is up again, continuing the inflationary worries that we are seeing and energy is bucking the trend of a very weak market. But the higher natural gas and crude oil prices have been tailwinds for the energy sector this year." Detrick added
Megacap growth stocks slipped, with a few exceptions including Apple Inc, which rose 0.7%. JP Morgan Chase slid 1% to lead losses among big banks.
The yield on the benchmark 10-year Treasury notes rose to 3.131% earlier in the session.
Most traders are expecting a 75 basis-point hike at the U.S. central bank's June meeting, despite Fed chief Jerome Powell's ruling that out.
The CBOE volatility index, a measure of investors' anxiety, spiked to 31.41 points and the three major U.S. averages looked likely to register their fifth straight weekly decline, although with smaller losses than the prior week.
At 2:01 p.m. ET, the Dow Jones Industrial Average fell 245.43 points, or 0.74%, to 32,752.54, the S&P 500 lost 34.12 points, or 0.82%, to 4,112.75.
The tech-heavy Nasdaq slipped 1.4% in choppy trading, adding to a near 5% drop in the previous session.
Under Armour Inc slumped 24.5% after the sportswear maker forecast downbeat fiscal 2023 profit. Shares of rival Nike Inc slipped 4.8%.
Coinbase Global Inc dropped 10% on Friday to the lowest level since the cryptocurrency exchange's 2021 stock market debut.
Declining issues outnumbered advancing ones on the NYSE by a 2.71-to-1 ratio; on Nasdaq, a 3.12-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 61 new lows; the Nasdaq Composite recorded 13 new highs and 717 new lows. (Reporting by Echo Wang in New York; Additional reporting by Devik Jain in Bengaluru; Editing by Shinjini Ganguli, Anil D'Silva and Cynthia Osterman)
