Market selloff continues as economy worries grow

NEW YORK (Reuters) - The selloff in U.S. stocks returned on Friday as worries about slower global growth remained firmly intact despite stronger-than-expected U.S. jobs data.

The S&P 500 is down 11.5 percent over the last 11 sessions, while the CBOE Volatility index jumped 9.7 percent to 34.73 on Thursday.

Intense recent selling -- taking both the Dow and S&P down 4 percent and the Nasdaq down 5 percent on Thursday -- reflects frustration with politicians' inability to address pressing concerns over high public debt in Europe and the United States as growth in the world's large industrial economies show signs of stalling.

Slower growth in manufacturing and services in the United States also have renewed concern about another U.S. recession.

Stocks quickly erased early gains on the jobs report.

"It's going to be volatile," said Thomas Villalta, portfolio manager for Jones Villalta Asset Management in Austin, Texas.

"There's a lot of uncertainty in the market ... largely because we need more data points to ascertain where the economy is headed."

Technology led losses for a second day, with the Nasdaq losses outpacing those on other major indexes. On the S&P 500, financials dropped the most, with the S&P financial index down 2.5 percent.

The Dow Jones industrial average was down 118.06 points, or 1.04 percent, at 11,265.62. The Standard & Poor's 500 Index was down 16.77 points, or 1.40 percent, at 1,183.30. The Nasdaq Composite Index was down 52.00 points, or 2.03 percent, at 2,504.39.

(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)