NEW YORK — A strong jobs report boosted U.S. and European stocks Friday and left the Dow Jones industrial average just short of the 18,000 mark.
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, which were hurt once again by lower oil prices.
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.
“We continue to see this steady drip into the equities markets, and I don’t think it’s going to stop any time soon,” said David Kelly, chief global strategist for J.P. Morgan Funds.
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 soon will start raising interest rates.
