Broad S&P 500 index fell 1.5 percent, while Nasdaq's technology-heavy composite index and Dow Jones industrial index both fell 1.6 percent.
Statistics on Friday showed that 256,000 new jobs were created outside the agricultural sector in the USA in December – the strongest job figure in nine months in the country.
Good news for the economy, but not for the market, at least not right now, says Scott Wren, strategist at financial firm Wells Fargo Investment Institute, to CNBC.
Tough for tech companies
In the pricing of the bond market, the probability of an interest rate cut by the US central bank Federal Reserve (Fed) in the spring has essentially been eliminated.
According to analysis firm CME Group, the odds of a cut in March fell to 25 percent, from 41 percent on Thursday. Now, it's pointing towards the next cut not coming until October.
Many heavy hitters in the stock market would benefit from more cuts.
The technology sector had a tough day. Of the seven major tech companies known as "the magnificent seven", only Facebook's parent company Meta rose. Worst hit were semiconductor manufacturer Nvidia, down 3 percent, and iPhone manufacturer Apple, which fell 2.4 percent.
Black week
The yield on US government bonds, regardless of maturity, rose sharply during the day, which is a sign of decreased interest in stock trading.
The ten-year government bonds reached their highest level since the end of 2023 after the job report.
The dollar also strengthened against other currencies. One dollar now costs, for example, 11.21 kronor.
Looking at the whole week, the S&P 500 and Dow Jones industrial index both fell 1.9 percent, while Nasdaq's composite index fell 2.3 percent.
