The S&P 500 ended higher on Sep 1 after a jump in unemployment further triggered expectations of a pause in interest rate hikes this month, while shares of streaming firms tumbled due to a rate dispute between Disney and Charter Communications.
The Labor Department's report showed the August unemployment rate rose to 3.8 percent while wage growth slowed. Nonfarm payrolls rose more than expected, though data for July was revised lower to 157,000 job additions.
The data added to recent macroeconomic evidence that the Federal Reserve is winning its battle against inflation. It cemented expectations that the central bank is near the end of its interest rate hiking cycle.
"The data makes the case for the Fed becoming more dovish as we head into the fall. If the end of tightening comes sooner than later, that could lead to a substantial rally in stocks," said Keith Buchanan, a portfolio manager at GLOBALT Investments in Atlanta.
Interest rate futures suggest traders see a 93 percent chance the Fed will keep interest rates unchanged at its meeting later this month, according to CME's FedWatch tool.
Walt Disney dropped 2.4 percent and Charter Communications fell 3.6 percent after the companies traded salvos over an unresolved distribution agreement after several channels, including ESPN, went dark on Aug 31 for customers of Charter's Spectrum cable service.
Other streaming companies also fell, with Warner Bros Discovery slumping 12 percent, Paramount Global losing 9.5 percent and Fox Corp down nearly 6 percent.
The most traded stock in the S&P 500 was Tesla Inc , with $32.6 billion worth of shares exchanged during the session. The shares declined 5 percent after the EV maker cut prices for its Model S and Model X vehicles in the US.
Unofficially, the S&P 500 climbed 0.18 percent to end at 4,515.77 points.
The Nasdaq declined 0.02 percent to 14,031.82 points, while Dow Jones Industrial Average rose 0.33 percent to 34,837.71 points.
Of the 11 S&P 500 sector indexes, six rose, led by energy, up 2.05 percent, followed by a 1.01 percent gain in materials.
Volume on US exchanges was relatively light, with 8.9 billion shares traded, compared to an average of 10.4 billion shares over the previous 20 sessions.
For the week, the S&P 500 rose 2.50 percent, the Dow added 1.43 percent and the Nasdaq climbed 3.25 percent.
The US stock market will remain closed on Sep 4 for the Labor Day holiday.
Broadcom fell 5.5 percent after the chipmaker projected current-quarter revenue below expectations, while Dell Technologies surged 21 percent after the personal computer maker raised its annual forecasts for revenue and profit.
Lululemon Athletica gained 6 percent after the yogawear maker lifted its annual profit and revenue forecasts for a second time.
Walgreens Boots Alliance fell 7.4 percent after the pharmacy chain said CEO Rosalind Brewer had stepped down.
Advancing issues outnumbered falling ones within the S&P 500 by a 2.1-to-one ratio.
The S&P 500 posted 28 new highs and 20 new lows; the Nasdaq recorded 84 new highs and 90 new lows.
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