Stocks fell Thursday after strong labor market data increased concerns amongst market participants that the Federal Reserve will issue another rate hike at its policy meeting later this month. The Dow Jones Industrial Average dropped more than 365 points, while the S&P 500 and Nasdaq Composite each lost about 0.8%.

Here's how the market settled on Thursday:

S&P 500 Index (SPY  ): -0.79% or -35.23 points to 4,411.59

Dow Jones Industrial Average (DIA  ): -1.07% or -366.38 points to 33,922.26

Nasdaq Composite Index (QQQ  ): -0.82% or -112.61 points to 13,679.04

Driving market moves lower, private payrolls surged higher in June, according to data from payroll processing firm ADP, totaling 497,000 for the biggest monthly gain since July 2022. The total was also double the 220,000 expected by Dow Jones consensus and well above May's downwardly revised increase of 267,000 jobs.

While the ADP report is considered to be less reliable than other economic data, it still shows strong labor market growth ahead of Friday's "official" jobs report for June. Economists expect U.S. non-farm payrolls to increase by 240,000, according to Dow Jones, slowing from May's 339,000 additions.

Other labor market data out Thursday included the Job Openings and Labor Turnover Survey, which showed 9.82 million total openings in May -- below the previous month's upwardly revised total of 10.32 million and below FactSet estimates of 9.9 million. Quits rose in May, climbing above 4 million.

Moreover, initial unemployment claims rose by 248,000 for the week ended July 1, according to the Labor Department Thursday, representing a rise of 12,000 week-over-week. Continuing jobless claims ticked lower to 1.72 million.

The recent mix of labor market data now has analysts pricing a nearly 95% chance of a quarter point interest rate hike to 5.25%-5.50% at the Fed's July meeting, according to the CME FedWatch tool. That probability also followed hawkish minutes from the central bank's June policy meeting out Wednesday, showing that nearly all policymakers expect more interest rate hikes in 2023.

Elsewhere, JetBlue (JBLU  ) announced it will end its partnership in the northeast United States with American Airlines (AAL  ) following a U.S. judge's ruling that the agreement was anticompetitive. JetBlue said it plans to focus its efforts on its acquisition of Spirit Airlines (SAVE  ).

Meta Platforms (META  ) officially launched its Twitter competitor Threads on Thursday, with CEO Mark Zuckerberg announcing the platform has already surpassed 30 million signups.

"While we are impressed with Threads and note Twitter has its current difficulties, not every Meta product launch has succeeded," KeyBanc analyst Justin Patterson wrote in a Thursday note. "We believe watching downloads and ultimately demographics (are these existing Twitter users or net new users to the category?) will be crucial in gauging traction."

Looking ahead, all eyes will be on June's jobs report due out Friday morning.