Stocks on Wall Street ended sharply higher on Friday (Saturday morning GMT ) , after strong jobs report sparked hope that the Federal Reserve will soon begin to reduce the magnitude of the stimulus .
The Dow Jones Industrial Average posted strong gains 198.69 points, or 1.26 percent, to 16020.20 .
The broad-based S & P 500 added 20.06 points ( 1.12 percent) to 1805.09 , while the tech-heavy Nasdaq composite index jumped 29.36 points, or 0.73 percent, to 4062.52 .
The Dow and the S & P 500 snapping a five- session streak . Wall Street rally since the opening bell after a November jobs report from the Labor Department was better than expected .
The U.S. unemployment rate fell to seven per cent , the lowest in five years , from 7.3 percent in October , and the economy added 203,000 jobs .
Analysts said the Labor Department reports that can powerfully encourage the Fed to begin reducing its bond purchases 85 billion dollars per month , which aims to boost economic growth .
" Markets like this report because it shows reduced risk of disinflation or deflation , " said David Kotok of Cumberland Advisors told AFP .
The Commerce Department reported consumer spending increase their pace in October , the main driver of economic growth . While inflation fell for the third consecutive month , to an annual rate of 0.7 percent , well below the Fed's announced target of two per cent .
Adding to the excitement of the overall consumer confidence index University of Michigan jumped more than expected in December .
All 30 Dow stocks ended sturdy seed in positive territory , led by Intel , which rose 2.3 percent , DuPont increased 2.2 percent , as well as Boeing and General Electric each rose 1.9 percent .
In corporate news , retailer Sears slumped 3.8 percent after announcing plans for a " spin off " ( separation ) Lands End clothing business of his , subject to shareholder approval .
Ulta Salon , Cosmetics & Fragrance plunged 20.5 percent after reporting disappointing fiscal third -quarter earnings showed a decrease in sales in its stores .
Technology giant Google rose 1.2 percent to close at 1069.87 Dalar record high of U.S. on the Nasdaq .
Bond prices fell . The yield on U.S. 10-year bonds rose to 2.88 percent from 2.86 percent on Thursday , while the 30 - year bond rose to 3.92 percent from 3.91 percent . Prices and bond yields move inversely .
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