The sell-off comes after news that national unemployment rose to 8.2 percent.
Specialist Michael Gagliano, left, work with traders at his post on the floor of the New York Stock Exchange. Stocks fell sharply Friday after the release of a dismal report on job creation in the United States.
The government said today that employers added a net 69,000 jobs in May, far fewer than analysts expected.
Unemployment in the 17 countries that use the euro stayed at a record-high 11 percent, and there were signs that China's growth is slowing.
The Dow Jones industrial average closed down 275 points at 12,118, its biggest decline since November. The Dow is down 0.8 percent for the year.
The S&P 500 index closed down 32 points at 1,278. The Nasdaq composite index closed down 80 points at 2,747.
Six stocks fell for every one that rose on the New York Stock Exchange. Trading volume was heavy at 4.58 billion shares.