The 130-point drop came after traders had the Easter holiday weekend to think about the Labor Department report that only 120,000 non-farm jobs were added to the economy in March, far short of the 203,000 jobs economists expected.
There are no major economic reports due this week until the March Consumer Price Index comes out on Friday the 13th.
By close of trading on Wall Street, the Dow Jones industrial average was down 130.55 or 1 percent to 12,929.59. The tech-dominated Nasdaq composite index gave up 33.42 points or 1.08 percent to 3,047.08. The Standard and Poor's 500 index shed 15.88 points or 1.14 percent to 1,382.20.
On the New York Stock Exchange, 636 stocks advanced and 2,420 declined on a volume of 2.9 billion shares traded.
The 10-year treasury note was yielding 2.053 percent.
The euro rose to $1.3104 from Thursday's $1.3096. Against the yen, the dollar was higher at 81.56 yen from Thursday's 81.49 yen.
In Tokyo, the Nikkei 225 index shed 1.47 percent, 142.19, to 9,546.26.