The Dow Jones Industrial Average fell 1.4 percent and the broad S&P 500 index fell 2.6 percent. The tech-heavy Nasdaq Composite Index plunged 4.2 percent.
The Nasdaq had its worst day in more than a year.
This comes after figures showed many more new jobs were created outside the agricultural sector than expected in May. This reduces the chances of a policy rate cut later in June.
The jobs figures also pushed up interest rates on US government bonds.
The stock market was also concerned about the AI sector after a weak forecast from chipmaker Broadcom.
On Friday, Broadcom continued to decline, down 7.9 percent. Industry peers Marvell Technology and Micron Technology fell by 16.7 and 13.2 percent, respectively.
During the week as a whole, the Dow fell 0.3 percent, the S&P 500 index fell 2.4 percent, and the Nasdaq fell 4.7 percent.
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