Ahead of the open, CMC Markets' Michael Hewson said: "Today's United States payrolls report has the potential to upset the apple cart when it comes to whether or not we can expect to see a Fed rate cut later this month, and if we do whether it will be 25 or 50 basis points".
The losses in the USA market followed broad dips in European equities after German data showed industrial orders had fallen far more than expected in May, and a warning from the economy ministry that this sector of Europe's largest economy was likely to remain weak in the coming months.
Trump recently likened the Fed to a "stubborn child" for dragging its feet on a rate cut to boost the economy.
Federal Reserve Chairman Jerome Powell has said that transitory factors largely explain the weak inflation, and the central bank expects the inflation to pick up as the economy continues to grow. Unemployment will remain around 3.6%, the lowest rate in the decade. Over the year, average hourly earnings have grown by 3.1 percent.
The health care sector added 34,900 jobs after adding just 17,700 in May. While the sector has historically been a source of good-paying jobs for workers without college degrees, this is becoming less true.
Last month's solid job growth followed a tepid gain of 72,000 jobs in May, a result that had raised concern about the economy.
For Todd Leff, CEO of Hand & Stone Massage and Facial Spa, the resilience of the US job market has provided both an opportunity and a challenge. There were increases in healthcare and transportation and warehousing employment. In the past, President Donald Trump has tied low unemployment ratings to his administration's crackdown on border crossings and reestablishment of jobs either previously outsourced or lost to China.
The pace of the overall economy is widely thought to be slowing sharply from annual growth that neared a healthy three per cent past year.
The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one, rose to 62.9% last month from 62.8% in May.
Wall Street futures fell sharply following the strong June jobs data.
Conversely, a strong jobs report could temper expectations of a Fed rate cut.
Consumer spending is rising moderately, with confidence easing from its recent lofty levels. Home sales are rebounding.
Much of the story is the loss of unionized jobs in the sector, with nearly 40 percent disappearing as a result of the explosion in the trade deficit from 2000 to 2007. Growth in the services sector, which includes such varied industries as restaurants, finance and recreation, slowed in June.
Overall, employers have been adding jobs faster than new workers are flowing into the economy.