On Friday, the euro hit a two-year low against the dollar and stocks fell while oil slumped after disappointing U.S. jobs growth reinforced concerns that the U.S. economy was mired in a slow-growth rut.

Employers created only 80,000 jobs in June, far fewer than needed to bring down the 8.2 percent unemployment rate, according to the U.S. Labor Department. The report findings added to evidence that the debt crisis of Europe was weighing on global growth. "This isn't disappointing enough for QE3, but it suggests an extended period of sluggish growth and limited improvement on the jobs front," said Eric Teal, chief investment officer at First Citizens Bancshares Inc in Raleigh, North Carolina.

Prices of commodities tumbled as the jobs data fueled worries about the global economy and the demand for raw materials. Furthermore, copper lost 2 percent and gold 1 percent, pushing the 19-commodity Thomson Reuters CRB index .CRB to its worst performance since December 15 in addition to the slump in oil prices.

The jobs data came a day after the European Central Bank cut interest rates and China and the Bank of England announced more monetary easing. The dollar rose to a 1-1/2-year high against the Swiss franc while the euro fell 1 percent to a two-year low of $1.2264 before rebounding to $1.2296, off 0.77 percent.

"Politically and economically, it is not the environment for the euro to rally. ... In a week or a month's time, it can easily get back down towards below $1.2280 and maybe even head towards $1.20," said Kathleen Brooks, research director at FOREX.com in London.

The Dow Jones industrial average .DJI was down 124.20 points, or 0.96 percent, at 12,772.47. The Standard & Poor's 500 Index .SPX was down 12.90 points, or 0.94 percent, at 1,354.68. The Nasdaq Composite Index .IXIC was down 38.79 points, or 1.30 percent, at 2,937.33.