Stocks closed out the week with a big thud Friday, with the Nasdaq narrowly avoiding its worst one-day loss this year as momentum names got crushed for a second day. The Dow and S&P 500 finished far from their record highs hit earlier in the session. "This is a spillover effect from the Nasdaq's momentum names into the broader market," said Art Hogan, chief market strategist at Wunderlich Securities. "We've seen momentum names weak over the week and that seems to have picked up steam today – 1,875 on the S&P 500 is going to be a critical level. If we close below that, people are going to see it as a resistance level."

Read MoreCramer: These stocks are too cheap For the second day, momentum stocks such as Tesla, Netflix, Amazon.com and Priceline fell heavily. Newly split Google Class A and Class C shares were both down more than 4 percent. "The jobs report was more or less in line with expectations but the market had been up for four-consecutive days," note Elliot Spar, market strategist at Stifel Nicolaus. "Those that were long the big cap NDX names used the rally as a selling opportunity...It got very ugly after yesterday's lows were pierced. Selling begets selling so money managers can protect their performance." Read MoreUS-led bull market? Not so fast, says Jim O'Neill



Major U.S. Indexes

The U.S. created 192,000 new jobs in March after a gain of 197,000 in February, according to the Labor Department. The unemployment rate was unchanged at 6.7 percent. Economists polled by Reuters had expected employment to increase 200,000 last month and the unemployment rate to dip to 6.6 percent. "I think this is enough of a goldilocks number for the market – it doesn't change Fed tapering, but still signals the economy is expanding gradually," said Anthony Valeri, investment strategist for LPL Financial. The central bank previously said it would look to overhaul policy once the unemployment rate declined to 6.5 percent, but has since signaled that policy is no longer focused on unemployment.

Read MoreChart: What's the real unemployment rate?

Online food delivery services company GrubHub soared nearly 40 percent in its market debut. The company priced its IPO on Thursday at $26 a share, valuing the company at about $2.04 billion. The price was slightly above an already raised expected range of $23-$25 per share.

Anadarko Petroleum climbed after the oil and gas company said it would pay more than $5 billion to clean up areas across the United States polluted by nuclear fuel, wood creosote and rocket fuel waste, resolving a long-running lawsuit. At least 11 brokerages boosted their price targets on the company.

CarMax slumped after the auto retailer posted earnings and revenue that were below expectations. However, the company increased its share buyback program by one billion dollars, and said it also corrected an accounting issue during the fourth quarter related to extended warranties and related issues. First-quarter earnings season kicks off next week. S&P 500 earnings are expected to grow just 1.2 percent versus last year, according to analysts surveyed by Thomson Reuters. Revenue is expected to increase just 2.7 percent. Alcoa, JPMorgan Chase, and Wells Fargo are all slated to post results next week. "The bar is pretty low but if we get the typical, 3-percent beat rate, then we'll see earnings growth of 5 percent, which the market will be fine with," said Valeri. "And if you see some revenue growth, then investors will be happy." Companies have been pointing fingers at the unusually cold and long winter weather in lowering expectations. There have been almost six negative pre-announcements for every positive one, according to Thomson Reuters.