London (AFP) - A surge in hiring in the United States renewed worries about aggressive interest rate hikes, bolstering the dollar and sending stocks lower.
Meanwhile, poorly-received earnings reports from Apple, Amazon, and Google owner Alphabet raised worries that high interest rates and sky-high inflation were weighing on consumer demand.
The tech-heavy Nasdaq, which piled on more than three percent Thursday thanks to forecast-beating results from Facebook parent Meta, dropped two percent at the open of trading on Friday.
Shares in Amazon slumped 5.6 percent, Alphabet shed 4.4 percent and Apple dipped 0.6 percent.
The Dow slid 0.4 percent and S&P 500 fell 1.1 percent following the release of the monthly US jobs report.
After a five-month slowdown in hiring, the world's biggest economy added 517,000 jobs in January, and the jobless rate edged to 3.4 percent.
"The key takeaway from the report is that it has the market questioning its own conviction about the prospect of the Fed cutting rates before the end of the year, as it is thought the remarkable strength of the report could have the Fed questioning its own conviction about pausing rates soon," said market analyst Patrick O'Hare at Briefing.com.
The dollar bounded higher after the data was released, and the yield on US government bonds climbed higher.
Markets were also pricing in fresh geopolitical concerns after China said it was working to verify claims that Beijing flew a spy balloon over the United States, warning against "hype" over the issue.
In Europe, London managed to hold onto a small gain in afternoon trading, but Frankfurt and Paris were lower.
In Asia, shares in Indian conglomerate Adani fell further.
Beleaguered Indian tycoon Gautam Adani on Friday denied that his rise to become Asia's richest man -- a title he has lost in a phenomenal stock rout this week -- was thanks to Prime Minister Narendra Modi.
Combined market capitalisation in Adani's listed units has collapsed by about $120 billion -- or half their previous value -- since US short-seller Hindenburg Research, which makes money by betting on shares falling, released an explosive report last week.
It accused Adani of accounting fraud and artificially boosting its share prices, calling it a "brazen stock manipulation and accounting fraud scheme" and "the largest con in corporate history".
Critics say Adani's close relationship with Modi, who is also from Gujarat state, has helped him win business and avoid proper oversight.
Adani on Friday called the allegations "baseless".
Elsewhere, crude prices stabilised following Thursday's losses on concerns about the economic outlook and demand on data showing US stockpiles rising more than expected last week.
"Oil's in a bit of a limbo as the market awaits tangible signs of China's oil demand recovery," Vandana Hari, of Vanda Insights, said.
The Kremlin on Friday warned of a "further imbalance" to global energy markets ahead of an EU embargo on Russian oil products due to come into force this weekend.
An EU-wide ban on Russia oil products -- such as diesel, gasoline and jet fuel -- is set to come into effect on Sunday alongside a G7 price cap on these products.
It will expand upon an EU embargo on seaborne deliveries of Russian crude oil that was introduced in December last year.
Key figures around 1330 GMT
New York - Dow: DOWN 0.4 percent at 33,929.11 points
New York - S&P 500: DOWN 1.1 percent at 4,132.60
New York - Nasdaq: DOWN 2.0 percent at 11,952.18
London - FTSE 100: UP 0.6 percent at 7,868.20 points
Frankfurt - DAX: DOWN 0.9 percent at 15,375.75
Paris - CAC 40: DOWN 0.3 percent at 7,147.95
EURO STOXX 50: DOWN 0.6 percent at 4,215.96
Tokyo - Nikkei 225: UP 0.4 percent at 27,509.46 (close)
Hong Kong - Hang Seng Index: DOWN 1.4 percent at 21,660.47 (close)
Shanghai - Composite: DOWN 0.7 percent at 3,263.41 (close)
Euro/dollar: DOWN at $1.0848 from $1.0918 on Thursday
Pound/dollar: DOWN at $1.2114 from $1.2225
Euro/pound: UP at 89.54 pence from 89.21 pence
Dollar/yen: UP at 130.36 yen from 128.62 yen
West Texas Intermediate: UP 0.3 percent at $76.08 per barrel
Brent North Sea crude: UP less than 0.1 percent at $82.24 per barrel
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