US STOCKS-Wall Street set to fall as solid jobs data fuels rate hike worries

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.)

* Nonfarm payrolls beat expectations in July

* Lyft gains as record earnings overshadow cautious outlook

* Futures down: Dow 0.62%, S&P 0.96%, Nasdaq 1.27% (Adds comment, details; updates prices)

By Devik Jain and Anisha Sircar

Aug 5 (Reuters) - Wall Street's main indexes were set to open sharply lower on Friday as a solid jobs report bolstered the case for the Federal Reserve to continue on its aggressive policy tightening path.

Data showed U.S. employers hired far more workers than expected in July, with the unemployment rate falling to a pre-pandemic low of 3.5%, the strongest evidence yet that the economy was not in recession.

"What we have heard from the various Fed governors this week about it being too early to pivot away from a tightening policy is definitely in place with the jobs report that is 'this hot'," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

"It gives the Fed reason to continue to raise rates and that is what got the market on edge."

A bevy of policymakers have this week near uniformly flagged the central bank remains determined to press ahead with rate hikes until it sees strong and long-lasting evidence that inflation is trending lower towards the Fed's 2% goal.

Markets are now pricing in a 65.5% chance of a 75-basis-point interest rate hike in September, up from 40% before the data. The central bank has already increased rates by 2.25 percentage points so far this year.

U.S. Treasury yields extended their rise after the report, likely putting pressure on high-growth stocks such as Apple and Alphabet.

Worries about an aggressive rise in borrowing costs, the war in Ukraine, Europe's energy crisis and COVID-19 flare-ups in China have rattled equities this year and prompted investors to adjust their earnings expectations for corporate America.

However, the second-quarter earnings season has showed companies were far more resilient than estimated. Of the 410 S&P 500 companies that have reported earnings so far, 77.1% reported above analyst expectations, according to Refinitiv data.

At 8:46 a.m. ET, Dow e-minis were down 203 points, or 0.62%, S&P 500 e-minis were down 39.75 points, or 0.96%, and Nasdaq 100 e-minis were down 169 points, or 1.27%.

Lyft Inc rose 6.6% in premarket trading as the ride-hailing firm forecast an adjusted operating profit of $1 billion for 2024 after posting record quarterly earnings.

DoorDash Inc gained 5.1% after the food delivery firm raised annual target for a key industry metric, saying it does not expect a slowdown in demand as consumers continue to order in despite decades-high inflation.

Block Inc fell 7.1% as the digital payments company slowed hiring and said it will slash 2022 investment target by $250 million, after a slump in bitcoin prices drove the Jack Dorsey-led firm to a loss in the second quarter.

(Reporting by Devik Jain, Anisha Sircar and Aniruddha Ghosh in Bengaluru; Editing by Aditya Soni)