Dow falls 394 points; biggest one-day point loss in 15 months

NEW YORK (CNNMoney.com) - Stocks tanked Friday, with the Dow industrials shedding nearly 395 points after oil prices spiked more than $11 a barrel and the May jobs report showed a big jump in the unemployment rate.

Bond prices surged, as investors sought safety in government debt, while the dollar tumbled versus the yen and euro.

The Dow Jones industrial average lost 394.64 points, its biggest one-day point loss since February of 2007, at the start of the subprime mortgage crisis. The selloff Friday amounted to a decline of more than 3 percent.

The broader Standard & Poor's 500 index lost 3.1 percent, while the Nasdaq composite lost 3 percent. Both suffered their biggest declines in more than four months.

–By CNNMoney's Alexandra Twin