When the week's market action culminated Friday with a jobs report sprinkled with hints of the hated "s-word," traders were left with little to do but sell. Stagflation, a period of rising interest rates in a slowing economy, remains a threat to the stock market as a possible hangover after the long period of record-low interest rates in the early part of this decade. Easy credit powered a real estate boom that, with the aid of lower tax rates, gave consumers the spending power to drive economic growth. But after roughly four years of economic expansion, investors are starting to price in a slowdown, and the slow jobs growth that showed up in Friday's payroll employment report jibed with their concerns. Even worse, stronger-than-expected wage growth played into recent statements from the Federal Reserve about the threat of inflation, and traders were hit with a double-whammy. The Labor Department said nonfarm payrolls added just 121,000 new jobs in June, short of expectations for about 200,000 jobs; that consensus figure had risen from 160,000 after Wednesday's stronger-than-expected ADP jobs survey. The Labor Department's report paints a picture of an economy that is barely adding enough jobs to keep pace with population growth. May's payrolls were revised upward, but remained weak at 92,000. In contrast to the slow jobs growth, the government said average hourly earnings rose 0.5%, compared to the 0.1% increase recorded in May. Economists were expecting a tick up to 0.3%. The number ultimately reported gave the market cause for alarm because wage inflation could prompt the Federal Reserve to keep tightening. In response, the stock market dropped, with the Nasdaq Composite leading the decline, down 25 points, or 1.2%, to 2130. The Dow Jones Industrial Average finished down 135 points, or 1.2%, to 11,091, and the S&P 500 lost 9 points, or 0.7%, to 1265. That left all three indices lower for the week. The Dow lost 60 points, the Nasdaq shed 42 points and the S&P was down 5.