CANADA STOCKS-TSX down 1% as strong jobs data stokes interest rate concerns

(Updates prices and details throughout)

* Index on track to slip after two weeks of gains

* Canadian job growth beats expectations

By Tharuniyaa Lakshmi

June 5 (Reuters) - Canada's main stock index fell more than 1% on Friday, tracking losses on Wall Street, as stronger-than-expected U.S. and domestic payrolls data fueled expectations of a tighter monetary policy.

At 10:03 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 1.1% at 34.805.40 points. The index was set to wipe out its weekly gains due to volatility in commodities and persistent fears of inflation.

* Canada's economy added 87,800 jobs and the unemployment rate fell back to 6.6% in May, data showed on Friday, defying widespread expectations and showing signs of some resilience despite signs of softer economic growth.

* The May data marked the first job growth of 2026 and helped wipe out almost 80% of all job losses posted since the start of the year. The last time the economy added a significant number of jobs was October 2025, Statistics Canada said.

* "With the Bank of Canada decision coming up and more macro data due, that's what we will be focused on in the near term," said Michael Constantino, CEO of Webull Canada.

* Four of the 10 TSX sectors were in the red - led by miners, which fell 4.7% as gold prices slipped after stronger-than-expected U.S. jobs data reinforced expectations of higher-for-longer interest rates.

* Technology stocks fell 2.4%, while energy stocks dropped 2.1% as oil prices slipped after Oman said operations at its Mina al Fahal port were proceeding normally, following a Reuters report of disruption after an explosion.

* Meanwhile, Iran has made a ceasefire between Israel and Hezbollah a condition for any peace deal with Washington to resolve the war, now in its fourth month, and reopen the Strait of Hormuz.

* "Geopolitical headlines from the Middle East are coming through almost every other day, but investors seem to be taking them in stride unless there is a major escalation," Constantino said.

* Healthcare stocks led gains, up 1.5%, while consumer staples also rose 1.3%. (Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Joyjeet Das)