U.S. stocks closed more than 1 percent lower Friday ahead of a long weekend as uncertainty about the timing of a rate hike and Chinese economic growth continued to weigh.

The major averages ended off session lows but still logged losses of about 3 percent or more for the week.

"You've got a buyers' strike and a lot of buyers anxious to get out ahead of a long weekend, ahead of pent-up news out of China," said Art Hogan, chief market strategist at Wunderlich Securities.

Mainland Chinese stock markets reopen Monday after a four-day weekend and ahead of several regional reports on trade and inflation due next week. U.S. stock markets are closed Monday for the Labor Day holiday.

"I think it's a combination of continued jitters overseas," said Bill Stone, chief investment strategist at PNC Asset Management. "China was closed, but Japan wasn't. That and Europe set us off on a bad start."

European stocks extended losses to close more than 2 percent lower following the employment report. Mainland Chinese stocks were closed for a second straight day for a public holiday. The Nikkei closed down 2.15 percent. The Hang Seng declined 0.4 percent.



Stone noted the jobs report is also "probably not enough to settle the riddle on when the Fed will move." PNC expects a hike in September, or at least sometime later in 2015.

The Dow Jones industrial average closed about 272 points lower after earlier falling 348 points, with DuPont and Goldman Sachs the greatest blue chip decliners. Materials and financials lost more than 1.5 percent to lead all 10 S&P 500 sectors lower.

The S&P 500 closed on the edge of correction territory, off 10.00 percent from its 52-week high. The Nasdaq composite and Dow closed in correction territory.



"On balance I think the report was a good one, and if we weren't in the middle of market volatility and global turmoil we'd be set for a hike in September," said Liz Ann Sonders, chief investment strategist at Charles Schwab.