(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)