The latest Labor Department figures also showed the US added 173,000 jobs in August. The figure was below expectations, but the totals for June and July were revised up.
The Dow Jones fell 272.38 points, or 1.66%, to 16,102.38, while the S&P 500 dropped 29.91 points to 1,921.22.
The NASDAQ was down 49.58 points at 4,683.92.
The latest jobs report is the last before the Federal Reserve meets later this month to decide whether to increase interest rates.
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