04:57 PM EDT, 10/04/2024 (MT Newswires) -- The Dow Jones Industrial Average closed at an all-time high while Treasury yields surged Friday after official data showed the economy added more jobs than projected in September.

The Dow increased 0.8% to 42,352.8, while the Nasdaq Composite rose 1.2% to 18,137.9. The S&P 500 advanced 0.9% to 5,751.1. Financials and consumer discretionary led the gainers among sectors. Only real estate and utilities closed lower.

For the week, the S&P 500 gained 0.2%, while the Dow and the Nasdaq closed 0.1% higher each.

In economic news, total nonfarm payrolls in the US climbed by 254,000 last month, the Bureau of Labor Statistics reported. The consensus was for a 150,000 increase, according to a survey compiled by Bloomberg. The unemployment rate declined to 4.1% from August's 4.2%, which was the market view for September.

Last month, the Federal Reserve lowered its benchmark lending rate by 50 basis points to a range of 4.75% to 5%. The latest jobs report makes another 50-basis-point reduction unlikely, Oxford Economics said, adding that the Fed is seen delivering 25-basis-point cuts in each of November and December.

The probability that the central bank's Federal Open Market Committee will lower interest rates by 25 basis points next month surged to 98% Friday from 68% Thursday, while the odds of a 50-basis-point cut slid to zero from 32%, according to the CME FedWatch tool.

The US two-year yield soared 21.4 basis points to 3.93%, while the 10-year rate jumped 11.9 basis points to 3.97%.

The International Longshoremen's Association union has ended its strike across the East and Gulf Coast ports after reaching a tentative agreement on wages with the United States Maritime Alliance. The parties agreed to extend their contract through Jan. 15.

West Texas Intermediate crude oil gained 1.3% to $74.63 a barrel, bringing the weekly gain to more than 9% by 4:45 pm ET.

Iran recently carried out a missile attack on Israel in retaliation for the latter's killing of Hezbollah chief Hassan Nasrallah and an Iranian commander in Lebanon. In response to a question by reporters whether the US would support Israel striking Iranian oil facilities, President Joe Biden said Thursday "we're in discussion of that."

"Depending on the scale of such a response, it could potentially be significant for oil markets," ING wrote in a Friday note. "Not only due to the immediate impact of losing Iranian barrels but also due to the fact that this scenario risks spilling over into something more extreme, which could potentially lead to a disruption in Persian Gulf oil and (liquefied natural gas) flows through the Strait of Hormuz."

In company news, Boeing ( BA ) and a negotiating committee of the International Association of Machinists and Aerospace Workers will meet the Federal Mediation and Conciliation Services Monday to resume contract negotiations, IAM Union District 751 said Friday. The plane maker's shares gained 3%, among the best performers on the Dow.

Rivian Automotive's ( RIVN ) third-quarter vehicle production and deliveries missed analyst estimates amid a supply shortage, prompting the electric vehicle maker to lower its full-year output guidance. The company's shares declined 3.2%.

Homebuilders D.R. Horton ( DHI ) , Lennar ( LEN ) and PulteGroup ( PHM ) were down between 2% and 3% each.

Gold fell 0.3% to $2,671.10 per troy ounce, and silver dropped 0.1% to $32.45 per ounce.