The main focus in the markets was the monthly hiring numbers. The Labor Department said U.S. employers added 321,000 jobs last month, the biggest burst of hiring in nearly three years, while the unemployment rate remained steady at 5.8 percent.
Despite the good news, stock gains were restrained. Investors now expect that the robust jobs growth — and other signs the economy is accelerating — could lead the Federal Reserve to raise interest rates sooner than anticipated.
Banks, whose profit margins increase when interest rates rise, were among Friday’s biggest gainers. Safety-focused utility stocks, which tend to perform poorly in an improving economy, were among the biggest decliners, along with energy companies.
With Friday’s modest increases, the Standard & Poor’s 500 index closed out a seventh-straight week of gains. The stretch was its longest winning streak in a year and in stark contrast to the near-correction in the market only a month-and-a-half ago.
The Dow Jones industrial average rose 58.69 points, or 0.3 percent, to 17,958.79. The S&P 500 index climbed 3.45 points, or 0.2 percent, to 2,075.37. The Nasdaq composite gained 11.32 points, or 0.2 percent, to 4,780.76.
November’s jobs report, as well as other positive economic data, could raise expectations among investors that the Federal Reserve will soon start raising interest rates. Last month marks the 10th straight month of job gains above 200,000, and would put 2014 on track to be the best year for hiring since 1999.
The yield on the benchmark 10-year U.S. Treasury note climbed to 2.31 percent Friday from 2.24 percent the day before as investors sold bonds in anticipation of higher rates.
Not all stocks would be losers in a higher interest rate environment. Bank stocks rose Friday, with JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo up 1 percent to 2.5 percent. Higher interest rates would allow banks to charge more for loans and that would boost their profits.
Still, those gains weren’t enough to push the Dow to another round-number landmark. Just five months after cresting the 17,000-point level for the first time, the Dow is on the verge of 18,000. The blue chips came within nine points of that figure Friday, before pulling back.
The price of oil fell Friday to its lowest level since July of 2009 on continued expectations of high global supplies and Saudi Arabia’s decision to cut its prices.
Benchmark U.S. crude fell 97 cents to close at $65.84 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell for the ninth time in the last 10 trading sessions, closing down 57 cents to $69.07 in London.
Energy stocks followed oil prices lower. Chevron fell $1.41, or 1.3 percent, to $110.87. Marathon Petroleum lost $4.52, or 4.7 percent, to $92.15 and Phillips 66 fell $1.95, or 2.6 percent, to $73.02.
The dollar rose against other currencies as traders anticipated more robust growth in the U.S. and higher interest rates.
The price of gold fell $17.30, or 1.4 percent, to $1,190.40 an ounce. Silver fell 32 cents, or 1.9 percent, to $16.26 an ounce. Copper slipped a penny to $2.90 a pound.