Stocks fell on Friday after the release of stronger jobs data dampened hope for easier Federal Reserve monetary policy.
The Dow Jones Industrial Average plummeted 125.05 points to start Friday at 26,840.95
The S&P 500 subtracted 17.69 points to 2,978.13.
The NASDAQ Composite lost 50.65 points to 8,119.58, as semiconductor stocks fell broadly.
Equities were on pace to notch solid weekly gains despite Friday's losses. The Dow and S&P 500 were both up more than 1% for the week heading into the session. The NASDAQ had gained 2.1%.
Stock markets were closed Thursday for the Fourth of July holiday.
Gains in bank shares offset some of the losses. Citigroup, J.P. Morgan Chase, Bank of America and Wells Fargo all rose more than 0.5%.
In corporate news, Samsung warned its second-quarter earnings likely fell 56% on a year-over-year basis, citing weak demand for memory chips. The warning pressured semiconductor stocks like Qualcomm which fell 3.1%, and Broadcom, off 1.4%.
The U.S. economy added 224,000 jobs in June. Economists had forecast the U.S. added 165,000 jobs in June, after a stunningly low 75,000 jobs were created in May
Investors expected the Fed to cut rates later this month heading into Friday's session. One expert said expectations for a rate cut in July were at 100%.
Prices for the benchmark 10-year U.S. Treasury were substantially lower, rocketing yields to 2.06%, from Wednesday's 1.95%. Treasury prices and yields move in opposite directions.
Oil prices hiked 33 cents to $57.67 U.S. a barrel.
Gold prices dipped $29.50 to $1,391.40 U.S. an ounce.