North America stocks fell sharply Friday, as investors reacted to a disappointing U.S. job report that fed worries about a weakening American economy.

U.S. non-farm payrolls fell by about 4,000 in August, well under the 100,000 jobs analysts had expected the U.S. would add. The negative jobs growth number was the first for the U.S. economy in almost four years.

In Toronto, the S&P/TSX composite index dropped 144.48 points, or 1.05%, to 13,651.21.

For the week, the benchmark index shed 9.27 points.

All 10 TSX main indexes closed lower Friday.

The energy index gave up 1.34%, despite a modest rise in the price of oil.

Light, sweet crude gained 40¢ on the session to close at US$76.70 a barrel.

EnCana Corp. fell 99¢, or 1.57%, to $62.06.

The materials index fell 0.85%, but the gold sub-index moved up 0.61%

Gold futures rose $5.10, or 0.7%, to close at US$709.70 an ounce on the New York Mercantile Exchange

Barrick Gold Corp. gained 56¢, or 1.47%, to $38.66.

Shares of Meridian Gold sagged, however, after it said it saw no white knight bids coming to prevent a hostile takeover by Yamana Gold. Meridian shares were down $2.78, or 8.3%, at $30.90.

The S&P/TSX Venture Exchange fell 7.39 points, or 0.27%, to 2,697.07.

The Canadian dollar moved 0.18 of a cent lower to US94.83¢.

In New York, stocks fell sharply as weak jobs data stoked fears that the U.S. economy was headed into recession.

The report cemented expectations the U.S. Federal Reserve would cut interest rates when policymakers meet on Sept. 18.

The Dow Jones industrial average sank 249.97, or 1.87%, to 13,113.38, the Nasdaq composite index gave up 48.62, or 1.86%, to 2,565.70, and the S&P500 dropped 25.00, or 1.69%, to 1,453.55.

The Dow was down 1.8% for the week, while the S&P 500 shed 1.4% and the Nasdaq fell 1.2%.