04:54 PM EDT, 06/07/2024 (MT Newswires) -- The Standard and Poor's 500 posted a 1.3% weekly gain, aided by a rally in Nvidia ( NVDA ) shares, as investors parsed the latest jobs report and looked ahead to the Federal Reserve's monetary policy meeting scheduled for next week.

The benchmark equity index ended Friday's session at 5,346.99, up from last week's close of 5,277.51. The S&P 500 closed at a record high Wednesday, but fell 0.1% Friday. The technology sector rose 3.8%, the best performer for the week, followed by health care, communication services and consumer discretionary, all up more than 1.5% each. Consumer staples rose 0.5%.

Utilities and energy posted the steepest declines, down 3.9% and 3.5%, respectively, and materials fell 2%. Industrials, financials and real estate also closed lower.

The economy added 272,000 jobs in May, the Labor Department said, topping a 180,000 increase expected in a survey compiled by Bloomberg. Wage growth also beat Wall Street's expectations, government data showed Friday.

Policymakers are expected to again hold interest rates steady at meetings next week and at the end of July, according to the CME FedWatch Tool. The focus on Wednesday likely will be on the Federal Open Market Committee's Summary of Economic Projections, which could indicate a shift to two rate cuts this year instead of three amid stronger Q1 inflation data, according to Morgan Stanley.

In a bid to tame inflation, the FOMC tightened monetary policy by 525 basis points from March 2022 through July 2023, but has since kept interest rates unchanged.

Data from the Institute for Supply Management released during the week showed a deepening contraction in the US manufacturing sector activity for May, while the services sector expanded.

Nvidia ( NVDA ) surged 10% on announcement of new partnerships amid the artificial intelligence chip boom. The tech giant topped $3 trillion in market value during the week. Hewlett Packard Enterprise ( HPE ) jumped nearly 14% after it posted a quarterly beat and raised its outlook.

Consumer discretionary rose 1.5% amid a 1.9% gain in Lululemon Athletica ( LULU ) , which lifted its guidance after delivering a fiscal Q1 beat. Bath & Body Works ( BBWI ) slumped 12% as it issued a downbeat Q2 earnings outlook.

Consumer staples' gain was offset by a 5.7% slump in Dollar Tree ( DLTR ) , which cut its full-year earnings outlook. J.M. Smucker (SJM) rose 3% after the company logged better-than-expected fiscal Q4 earnings.

Next week's economic calendar will feature the key official consumer and producer inflation reports for May, and an initial reading of consumer sentiment for this month.