Stock markets mostly fell worldwide on Friday after data showed US employers added jobs at a better-than-expected pace last month, raising the prospect the Federal Reserve's aggressive interest rate hikes will not be enough to contain inflation and avoid a recession.

Major Wall Street indices fell sharply, with the Nasdaq losing 2.5 percent, and were in the red for the week after a brief positive respite last week.

Paris and Frankfurt both closed slightly down. London's FTSE 100 was closed for a holiday.

Oil prices, meanwhile, pushed higher, a day after the OPEC+ group of major oil producing nations led by Saudi Arabia and Russia agreed to raise output more than expected in the wake of a European Union ban on most Russian crude.

American employers added 390,000 jobs last month, a sign of a slowdown in hiring but still above forecasts amid a shortage of workers, according to the US Labor Department.

The jobless rate held steady at 3.6 percent for the third consecutive month.

The Fed has hiked interest rates to combat sky-high inflation, but investors worry that more aggressive moves could backfire and hamper economic growth.

The jobs report contained some positive news for the Fed: wage gains slowed in the month and more people returned to the workforce.

But the central bank has signaled big rate hikes are coming, and the increases are likely to continue through the end of the year, adding to investor worries about the economic outlook.

"We are still in a bear market and until proven otherwise the path of least resistance is down," Maris Ogg of Tower Bridge Advisors, told AFP.

She noted that major components of inflation are not improving.

"Oil is not going to get better, labor is not going to get better, housing is not going to get better. Housing and labor are in shortage," she said. "As far as the stock market goes, I would be surprised if the worst is over."

The European Central Bank has indicated it will raise interest rates in July for the first time in over a decade.

Tokyo's stock market closed higher ahead of the US jobs report. Hong Kong and Chinese mainland indices were closed for holidays.

Among major companies, Tesla shares plunged 9.2 percent after the electric carmaker's CEO Elon Musk told employees the company plans to cut the salaried workforce by 10 percent and rely on more hourly workers because he had a "super bad feeling" about the economy.

Traders are awaiting the release of key US jobs data later Friday
Traders are awaiting the release of key US jobs data later Friday GETTY IMAGES NORTH AMERICA via AFP / SPENCER PLATT

Elsewhere, Brent North Sea crude, the international benchmark, rose 3.2 percent, to $121.31 a barrel.

OPEC+ agreed on Thursday to ramp up output in July by 50 percent more than in previous months.

New York - Dow: DOWN 1.0 percent to 32,899.7 (close)

New York - S&P 500: DOWN 1.6 percent at 4,108.54 (close)

New York - Nasdaq: DOWN 2.5 percent at 12,012.73 (close)

Frankfurt - DAX: DOWN 0.2 percent at 14,460.09 (close)

Paris - CAC 40: DOWN 0.2 percent at 6,485.30 points (close)

EURO STOXX 50: DOWN 0.3 percent at 3,783.66 points

London - FTSE 100: Closed for a holiday

Tokyo - Nikkei 225: UP 1.3 percent at 27,761.57 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

Shanghai - Composite: Closed for a holiday

Brent North Sea crude: UP 3.2 percent at $121.31 per barrel

West Texas Intermediate: UP 2.9 percent at $120.36 per barrel

Euro/dollar: DOWN at $1.0719 from $1.0753 on Thursday