NEW YORK (CNN/Money) - U.S. stocks tumbled Friday, and for the week, as investors took profits ahead of a three-day weekend, after the June payrolls report showed slowing growth, validating worries of a broader slowdown in the economic recovery.

U.S. financial markets are closed Monday in celebration of Independence Day.

On Friday, the Dow Jones industrial average (down 51.33 to 10,282.83, Charts) lost 0.5 percent, the Nasdaq composite (down 8.89 to 2,006.66, Charts) lost around 0.4 percent and the Standard & Poor's 500 (down 3.56 to 1,125.38, Charts) index lost 0.3 percent.

A variety of tech names, as well as big multi-national companies, led the list of stock decliners Friday.

Treasury prices rallied after the jobs report, pushing their yields lower, as investors poured money into the safer haven of bonds. The dollar declined versus other major currencies, boosting gold and other dollar-traded commodities.

The losses Friday came on the heels of steep declines for the market Thursday, giving a one-two punch to the start of the new quarter and second half of the year.

The June employment report, released early Friday, showed that employers added 112,000 jobs to their payrolls last month, less than half the 250,000 jobs that economists surveyed by Briefing.com expected. In addition, May and April tallies were revised downward. The unemployment rate in June held steady at 5.6 percent, as expected.

While there is no question that the labor market has shown improvement -- employers have added well over 1 million jobs this year -- the slower growth last month, particularly in the much-maligned manufacturing sector, was nonetheless worrisome for some investors. The payrolls report follows several other recent reports that suggest a slowdown in the pace of economic expansion.

"I think it's a tradeoff of risks for the market," said Jeff Kleintop, chief investment strategist at PNC Advisors.

"Recently, there had been concerns that the Fed was behind the curve," he added. "But with the latest string of data, not only today's non-farm payrolls, but also the recent manufacturing reports and retail comparable sales, that risk has been pushed off the table and replaced by fears that maybe growth is slowing."

The report was the third key market-moving event this week, following Monday's transfer of power in Iraq and Wednesday's decision by the Federal Reserve to boost the fed funds rate by a quarter-percentage point. Those two events happened mostly as had been expected, with the exception of the handover of power occurring two days ahead of schedule.

For the week, the Dow lost almost 0.9 percent, the Nasdaq lost 0.9 percent and the S&P 500 lost 0.8 percent.

Next week brings the start of the second-quarter earnings reporting period, which essentially begins with Alcoa (AA: Research, Estimates) on Wednesday. Yahoo! (YHOO: down $0.36 to $33.94, Research, Estimates) is also due Wednesday, with General Electric (GE: down $0.34 to $31.67, Research, Estimates) scheduled to follow next Friday.

But the strong earnings may not be sufficient to push the stock market out of the narrow range it's been in for the last few weeks, and to a larger extent, for the first half of the year.

"You would hope that the strong earnings would support the market and give it the ability to react positively," said Barry Hyman, equity market strategist at Ehrenkrantz King Nussbaum. "But I think the case for that has been diminished lately."

Hyman says that the market has at this point factored in the rising interest rates this year, but it hasn't yet factored in slowing economic growth.

"What the market can't accept is a slowing economy that impacts future earnings and also creates another unsure factor going into the presidential election in the fall," he added.

Intel (INTC: down $0.69 to $26.33, Research, Estimates) was the Nasdaq's most active, shedding more than 2.5 percent. It was one of a variety of semiconductor and semiconductor equipment shares declining.

The Semiconductor Industry Association (SIA) said Friday that worldwide chip sales rose to $17.32 billion in May, up 2.1 percent from April and up nearly 37 percent from a year earlier. Memory and cell phone chips were especially strong, and sales of microprocessors, the main chip in PCs, were pretty weak.

However, the SIA report also showed that the sales cycle has peaked and that industry growth is apt to slow through the end of the year versus a year earlier.

Chips have been particularly weak over the last two sessions, with investors taking profits on the sector, partly in response to recent brokerage downgrades and profit warnings in the sector.

The Philadelphia Semiconductor (down 9.72 to 457.31, Charts) index, or the Soxx, fell 2.1 percent.

Shares of Apple Computer (AAPL: down $1.22 to $31.08, Research, Estimates) tumbled more than 4 percent after the company said the release of its next iMac computer would be delayed.

Software maker WebMethods (WEBM: down $2.71 to $5.63, Research, Estimates) warned that it would report a wider-than-expected loss in its just-completed quarter due to a bunch of large deals that didn't close by the end of the quarter. The stock tumbled 32.5 percent in unusually active Nasdaq trade.

Among active New York Stock Exchange issues, Nortel Networks (NT: down $0.26 to $4.56, Research, Estimates) lost 5.4 percent after a Wall Street Journal article drew new attention to its accounting scandal and also said that it manipulated its books to make it look like it earned a profit in 2003. Additionally, CIBC downgraded Nortel Networks to "sector performer-speculative" from "sector outperformer-speculative" after the stock hit its price target.

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Additionally, pharmacy benefit service provider Caremark RX (CMX: down $1.20 to $31.00, Research, Estimates) fell after saying that Washington State and potentially 18 other states are probing its business practices.

Of the 30 components that make up the Dow industrials, 23 fell, led by Intel (INTC: down $0.69 to $26.33, Research, Estimates), General Electric (GE: down $0.34 to $31.67, Research, Estimates) and Caterpillar (CAT: down $1.46 to $76.72, Research, Estimates).

A notable advancer was Cardiac Science (DFIB: up $0.59 to $3.05, Research, Estimates), which rallied 24 percent in unusually active Nasdaq trade. The company said U.S. regulators have approved its new automatic cardiac defibrillator, which is designed in such a way that bystanders can use it to help heart attack victims in public places, as it gives voice instructions for use.

Market breadth was mixed. On the New York Stock Exchange, where 1.08 billion shares traded, advancers outnumbered decliners by nearly two to one. On the Nasdaq, losers beat gainers by a narrow margin as 1.20 billion shares changed hands.

In commodities trading, NYMEX light sweet crude oil futures fell 37 cents to settle at $38.37 a barrel. COMEX gold rose $2.30 to settle at $398.70 an ounce.

Treasury prices zoomed after the jobs report. The 10-year note rose 25/32 of a point in price, pushing its yield down to 4.46 percent from 4.56 percent late Thursday. The dollar tumbled versus the euro and inched higher versus the yen.