US stocks plunged on Friday as investors reacted to a strong December jobs report, which raised uncertainty about the path of interest rates this year. The Dow Jones Industrial Average fell about 1.6%, the S&P 500 dropped 1.5%, and the Nasdaq Composite tumbled 1.6%. The three major indexes erased all year-to-date gains with Friday’s pullback. The December nonfarm payrolls report showed the US economy added over 250,000 jobs, while the unemployment rate fell to 4.1%. The strong reading could prompt the Fed to keep rates higher for longer, leading to concerns among investors. Additionally, fresh data showed consumers are more pessimistic about future pricing pressures, with year-ahead inflation expectations rising to 3.3%. Fed officials have indicated they are slowing down on lowering rates, with markets now pricing in no easing before July. Despite the market downturn, investors welcomed upbeat earnings from companies like Walgreens and Delta. Looking ahead, investors will be watching for inflation data and quarterly earnings reports from big banks next week.