The May nonfarm payroll report showed a shockingly weak 69,000 new jobs created, less than half of what most economists expected and a signal the nascent U.S. recovery may be running out of steam. Also, the Chicago purchasing managers index dropped to 52.7 last month from 56.2; economists were expecting an increase to 56.8.
In midday trading, the Dow Jones Industrial Average dropped 213.20, or 1.72 percent, to 12,180.25. The broader S&P 500 fell 25.28, or 1.93 percent, to 1,285.05 and the Nasdaq Composite plunged 60.54, or 2.14 percent to 2,766.80. The yield on the benchmark 10-year Treasury fell to 1.46 percent. Asian stock indexes all closed lower and European indexes tumbled hard, with Germany's DAX plunging 3.35 percent.