The major averages closed lower today and for this abbreviated holiday week as stronger than expected economic data raised the concern of a Federal Reserve rate hike later this month. The Dow Jones Industrial Average fell 187 points or 0.55%. The S&P 500 closed down 12 points or 0.29% while the Nasdaq fell 18 points or 0.13%.

For the week, the S&P dropped 1.16%, while the Nasdaq declined 0.92%. The Dow shed 1.96% for its worst weekly performance since March.

The Labor Department's June jobs report showed payrolls increased less than expected, cooling down from May. Nonfarm payrolls rose by 209,000, while the unemployment rate came in at 3.6%. Economists polled by Dow Jones had anticipated 240,000 positions added and a similar jobless level.

However, stronger-than-expected wages numbers, heightened fears that the central bank may have reason to resume hiking later this month. Average hourly earnings increased by 0.4% in June and 4.4% from a year ago. Meanwhile, the unemployment rate declined from 3.7% in May.

According to CME Group's FedWatch tool, there is a 92% chance of a quarter-point hike on July 26.

Friday's moves come on the heels of Thursday's ADP data. The report showed private sector employers added 497,000 jobs in June, and far exceeded the 220,000 estimate from economists polled by Dow Jones.