Investing.com - U.S. stocks jumped up on Friday after official data revealed companies were adding payrolls at a much faster clip in November than markets were expecting.
At the close of U.S. trading, the Dow 30 rose 0.33%, the S&P 500 index rose 0.17%, while the Nasdaq Composite index rose 0.24%.
The S&P 500 VIX index, which measures the outlook for market volatility, was down 4.52% at 11.82.
The Labor Department reported earlier that the U.S. economy added 321,000 jobs in November, well past expectations for a 225,000 reading. October's figure was revised up to 243,000 from a previously estimated 214,000, pointing to underlying strength in the labor market.
The U.S. unemployment rate remained unchanged at 5.8% last month, in line with expectations.
Stocks applauded the report on hopes that a more robust U.S. economy will boost top and bottom lines going forward, while falling gasoline prices added to gains on hopes that newly-hired Americans paying less at the pump will spend more on holiday shopping.
A separate report showed that the U.S. trade deficit hit $43.40 billion in October, down from $43.60 billion in September, whose figure was revised from a previously estimated deficit of $43.00 billion. Analysts had expected the trade deficit to narrow to $41.20 billion in October.
Data also showed that U.S. factory orders fell 0.7% in October compared to expectations for a 0.2% contraction. Factory orders in September were revised to a 0.5% decline from a previously estimated 0.6% fall.
Leading Dow Jones Industrial Average performers included JPMorgan Chase & Co (NYSE:JPM), up 2.15%, Goldman Sachs Group Inc (NYSE:GS), up 1.82%, and Pfizer Inc (NYSE:PFE), up 1.01%.
The Dow Jones Industrial Average's worst performers included Chevron Corporation (NYSE:CVX), down 1.26%, Cisco Systems Inc (NASDAQ:CSCO), down 0.97%, and Caterpillar Inc (NYSE:CAT), down 0.89%.
European indices, meanwhile, ended the day higher.
After the close of European trade, the Euro Stoxx 50 rose 2.70%, France's CAC 40 rose 2.21%, while Germany's DAX 30 rose 2.39%. Meanwhile, in the U.K. the FTSE 100 rose 0.95%.