04:52 PM EDT, 10/04/2024 (MT Newswires) -- US equity indexes rose this week as a surge in nonfarm payrolls countered escalating tensions in the Middle East.

* The Dow Jones Industrial Average ended at record 42,352.75 on Friday, up from 42,313 a week earlier. The Nasdaq Composite closed at 18,137.85 versus 18,119.59 a week earlier, and the S&P 500 rose to 5,751.07 from 5,738.17. Energy and communication services topped the sector gains, while materials led the decliners.

* September's nonfarm payrolls' expansion of 254,000 compared with the 150,000 estimate. Gains for August were revised up by 17,000 and by 55,000 for July. The unemployment rate fell to 4.1%, in line, while average hourly earnings grew more than forecast.

* Following the jobs data, the probability of a 25 basis-point cut in interest rates jumped to 95% from 68% on Thursday, according to the CME Group's FedWatch Tool. The remaining 5% likelihood was for rates to be left unchanged compared with zero probability a day or week earlier. The CME data implies that the 50 basis-point reduction on Nov. 7 is now off the table, compared with 32% a day ago.

* Israel's ground operations in southern Lebanon, targeting Iran-backed Hezbollah, were followed by Iran's largest-ever attack on Israel on Tuesday. CNN reported Friday, citing the Lebanese health ministry, that Israel's unprecedented airstrike campaign has killed over 1,400 people.

* In response to a question whether the US would support Israel striking Iranian oil facilities, President Joe Biden said Thursday that "we're in discussion of that." Earlier, Biden reportedly said he would not back a strike on Iran's nuclear facilities. RBC Capital Markets said the Kharg Island oil export facilities function as a central nervous system for Iran's oil sector, handling most of the country's shipments.