US indices ended roughly flat as employment data guided the interest rate debate

By David French

(Reuters) – Wall Street closed little changed on Friday after a volatile session, as investors sought to understand how a strong jobs report would affect the U.S. Federal Reserve and its plans to raise rates aggressively.

The S&P 500 index ended 0.08% lower at 3,899.38 points. The Dow Jones fell 0.15% to 31,338.15. The Nasdaq Composite gained 0.12% to 11,635.31 points.

Despite the day’s volatility, the Nasdaq advanced for a fifth session in a row — the longest stretch of gains since early November — and the three major indexes rose solidly in a week shortened by the U.S. Independence Day holiday.

U.S. Labor Department data showed nonfarm payrolls added 372,000 jobs in June, up from 268,000 jobs estimated by economists in a Reuters poll.

After a brutal first half, US stock markets started July on a firmer footing, with investors relieved by signs of a moderate cycle of central bank interest rate hikes amid worries about a decompression in commodity prices and a possible recession.

For the week, the Nasdaq gained 4.5%, while the S&P 500 and Dow Jones gained 1.9% and 0.8%, respectively.