The Dow shed roughly half a percent, the S&P 500 lost three-tenths of a percent while the Nasdaq dipped about one-tenth.

Job growth in June was the lowest in two-and-a-half years - but still above the pace in the decade before the health crisis. And wages over the past year have risen more than 4%... more than double the Federal Reserve's two percent inflation rate target.

As a result, the Fed is still widely expected to raise rates at its meeting later this month after pausing in June.

Friday's jobs report kicks off a busy month of data including reports on inflation and corporate earnings, which are expected to fall 5.7% from the same period last year.

Tom Martin, Senior Portfolio Manager at Globalt Investments, says today's market dip may reflect high stock valuations that may not hold as we head into earnings season.

"You're starting to get, you know, a little bit of news at the margin from companies that it's going to take a little bit of time to reach some of these, you know, kind of, gee whiz goals that people have been setting out there. So the fact that the market takes a little bit of a breather here is no surprise."

In company news, Levi Strauss shares tumbled 7.7% after the iconic denim maker cut its annual profit forecast.

And shares of Rivian Automotive surged 14.2% after the electric vehicle maker reported better-than-expected quarterly deliveries.