The jobs data gave further credence to predictions that the Federal Reserve would hike the benchmark lending rate by at least a quarter percentage point at its next meeting in June. Many analysts expressed frustration that the market’s weeks-long angst over rates was distracting investors from a very positive economy and strong corporate earnings.

"Eventually, we’re going to have to come to the realization that the reason rates are rising is because of solid economic growth," said Chris Conkey, deputy chief investment officer at Evergreen Investments. "The Fed has clearly indicated that they’re going to raise rates."

According to preliminary calculations, the Dow Jones industrial average plummeted 123.92, or 1.2 percent, to 10,117.34. Declining issues outnumbered advancers by an impressive 8-to-1 margin on the New York Stock Exchange, where volume was moderate.

Broader stock indicators also slid. The Standard & Poor’s 500 index was down 15.30, or 1.4 percent, at 1,098.69, and the Nasdaq composite index lost 19.78, or 1 percent, to 1,917.96.

For the week, the Dow lost 108.23, or 1.1 percent, the S&P 500 fell 8.61, or 0.8 percent, and the Nasdaq dropped 2.19, or 0.1 percent. It was the second straight week of declines for all three major indexes, which hit their lowest levels since March 24.

The latest payroll figures from the Labor Department showed that the economy added 288,000 jobs in April, far outstripping economists’ predictions of 165,000 new jobs. March’s huge figure of 308,000 was revised higher to 337,000, and the data showed a jump in manufacturing jobs for the past three months, which were thought to be lagging. The Labor Department also reported a drop in the overall unemployment rate from 5.7 percent to 5.6 percent.

The economy’s strengths could be compelling for investors, if they have indeed moved past interest rate concerns. The jobs data showed the prospect of higher long-term earnings growth as companies appeared to be adding jobs and expanding their enterprises instead of merely eking additional productivity out of current operations.

"You look at this data, and you see that corporate demand must be stronger than we even think," said Brian Pears, head equity trader at Victory Capital Management.