The Dow Jones Industrial Average dropped 141.03 points, or 1.32 percent, to 10,533.95 and the Standard & Poor's 500 Index declined 15.72 points, or 1.40 percent, at 1,110.09, falling below its 200-day moving average.

The Nasdaq Composite Index slipped 29.41 points, or 1.28 percent, to 2,263.65.

Consumer stocks were among the biggest losers as the jobs report added to worries about consumer spending, while a drop in oil prices weighed on the energy sector. The S&P consumer discretionary index fell 1.6 percent and energy shares lost 1.8 percent.

Kraft Foods Inc. was a bright spot, gaining 1.8 percent to $30.20 after it reported higher-than-expected quarterly profit and raised its target for cost savings from the acquisition of Cadbury.

In Europe, the pan-European FTSEurofirst 300 index declined 1.1 percent after a 0.4 percent gain before the US jobs data.

World stocks as measured by MSCI dropped 0.6 percent. The Thomson Reuters global stock index fell 0.7 percent.

Safe-haven bellwethers gained, with gold rising and yields on US and German benchmark bonds declining.

US benchmark 10-year Treasury debt yields fell to a 15-month low, while two-year note yields dipped to a record low of 0.50 percent after the payrolls report.

In late morning in New York, the 10-year yield was at 2.83 percent, down from 2.90 percent on Thursday. Gold, rose $12.65, or 1.06 percent, to $1,206.70 an ounce.

The US dollar fell to 85.20 yen, approaching a 15-year low, and fell against the euro at $1.3269 amid economic growth.

The dollar declined against a basket of major trading-partner currencies, with the US Dollar Index down 0.6 percent at 80.349.

Meanwhile, oil prices fell below $81 a barrel Friday. Benchmark crude for September delivery fell $1.82 to $80.19 a barrel in early afternoon trading on the New York Mercantile Exchange.

In other Nymex trading in September contracts, heating oil fell 2.76 cents to $2.1592 a gallon, gasoline lost 3.29 cents to $2.1315 a gallon and natural gas dropped 3.7 cents to $4.561 per 1,000 cubic feet.

In London, Brent crude was down $1.07 to $80.74 a barrel on the ICE Futures exchange.