US STOCKS-Wall St slumps; S&P set for biggest weekly loss since 2012
* S&P 500 on track for biggest weekly loss since May 2012
* U.S. July payroll report comes in below forecasts
* P&G, Tesla rise after results; Chevron down
* Indexes down: Dow 0.7 pct, S&P 0.7, Nasdaq 0.9 pct (Updates to afternoon trading)
By Ryan Vlastelica
NEW YORK, Aug 1 (Reuters) - U.S. stocks tumbled in a volatile session on Friday, marking a second straight day of sharp declines as the latest economic data provided little clarity as to when the Federal Reserve might raise interest rates.
Stocks rose as much as 0.3 percent before turning decisively lower, putting the S&P 500 on track for its biggest weekly decline since May 2012.
The U.S. Labor Department reported that 209,000 jobs were created in July, below the 233,000 that economists had expected, while data from the Institute for Supply Management showed that manufacturing had its fastest expansion in more than three years in July.
Strong economic data has recently been viewed as a sign that the Fed might raise rates sooner than previously anticipated. Fears of a rate hike sparked Thursday's decline, which wiped out the Dow's entire gains so far this year. Continuación...