At the 10.15am (AEDT) official market open, the benchmark S & P/ASX200 index fell 51.7 points, or 0.88 per cent, to 5847.2 points while the broader All Ordinaries index lost 50.2 points, or 0.86 per cent, to 5818.4 points.

America’s Labor Department said the US economy added 295,000 jobs in February, pushing the unemployment rate down two-tenths to 5.5 per cent, the lowest level since May 2008.

CMC chief market analyst Ric Spooner said while strong US job growth is good news for economies, it looks like triggering a downward adjustment in stock prices as investors adapt to the increasing likelihood of higher US interest rates.

“The early stage of Fed tightening cycles tends to be bullish for stock markets as growth improves,” he said.

“In this case, however, markets are starting from a high valuation base creating the potential for some ‘froth’ to be knocked off valuations as markets adjust for the possibility of higher US bond yields.”

However, Mr Spooner said news over the weekend of strong export growth in China is encouraging and may soften the extent of today’s sell off, though “commodity stocks, especially gold miners, are likely to be lower as investors factor in the likely impact of a stronger US dollar on commodity prices.”

Materials led the market lower, giving up 1.90 per cent as a sector.

BHP Billiton shed 2.33 per cent to $31.88, while Rio Tinto retreated 1.97 per cent to $59.20.

Fortescue retreated 1.4 per cent to $2.12, while Newcrest shed 3.99 per cent to $12.75.

Energy stocks also fell sharply, losing 1.43 per cent.

Oil Search retreated 1.4 per cent to $7.73.

Santos gave up 2.68 per cent to $7.63, while Woodside Petroleum lost 1.28 per cent to $34.71.

Financials fell 0.70 per cent collectively.

ANZ lost 0.59 per cent to $35.18, while Commonwealth Bank edged down 0.4 per cent to $90.73.

National Australia Bank lost 0.84 per cent to $37.65 while Westpac shed 0.56 per cent to $37.47.

Consumer staples fell 0.56 per cent.

Woolworths gave up 0.6 per cent to $29.89, while Wesfarmers shed 0.5 per cent to $43.71.

Information Technology stocks were the one bright spot on the local market, adding 0.63 per cent.

Comnputershare led the charge, lifting 1 per cent to $13.12.

Meanwhile, Telstra lost 0.8 per cent to $6.33, and Qantas fell 0.35 per cent to $2.86.

In local economic news today, the ANZ job advertisements series for February is due out.

No major equities news is expected.

The local market closed lower on Friday with a drop in iron ore prices prompting another retreat.

The benchmark S & P/ASX200 index fell 5.3 points, or 0.09 per cent, to 5,898.9 points while the broader All Ordinaries index lost 5.1 points, or 0.09 per cent, to 5,868.6 points.