The insurgents said the bombing was in revenge for a Koran-burning incident at a US air base a week ago.
The burning, which the US says was unintentional, has sparked violent protests across the country.
Nato said it had no reports of international forces being among the casualties in Jalalabad.
No international forces among the casualties. Well hell lets just kill anyone in the name of Allah. This is who we are trying to deal with and train. What do you think the overall prospects for Afghanistan are?