GLOBAL MARKETS-Stocks rally, dollar higher in wake of US jobs numbers

By Caroline Valetkevitch

NEW YORK, Jan 9 (Reuters) - Major stock indexes jumped to record highs and the dollar was also up on Friday after data showed the U.S. economy created fewer jobs than expected in December, which did little to change rate cut expectations from the Federal Reserve this year.

The S&P 500 , Dow and the STOXX 600 notched record high closes. Chip stocks rose and helped to boost the S&P 500, with Intel INTC.O gaining 10.8% after U.S. President Donald Trump said he had a "great meeting" with the chipmaker's Chief Executive Officer, Lip-Bu Tan. Broadcom AVGO.O rose 3.8%.

The Bureau of Labor Statistics monthly report showed 50,000 workers were added to nonfarm payrolls in December, compared with expectations in a Reuters poll for a rise of 60,000, just above November's downwardly revised increase of 56,000. The unemployment rate eased, as expected, to 4.4%.

"Payrolls were a little bit light relative to consensus, but still fairly strong numbers," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

"We are back to normal in terms of economic reporting, so that's a bit of a relief for everyone."

Before now, the release of U.S. economic data had been delayed because of the long federal government shutdown.

Stock market gains this week came despite increased geopolitical tensions sparked by U.S. forces capturing Venezuelan leader Nicolas Maduro in a raid on its capital January 3.

The Dow Jones Industrial Average .DJI rose 237.96 points, or 0.48%, to 49,504.07, the S&P 500 .SPX rose 44.82 points, or 0.65%, to 6,966.28 and the Nasdaq Composite .IXIC rose 191.33 points, or 0.82%, to 23,671.35.

All three indexes posted gains in the first full trading week of 2026, driven by increases in materials, industrials and other sectors that have lagged technology stocks in recent years.

MSCI's gauge of stocks across the globe .MIWD00000PUS was up 5.42 points, or 0.53%, at 1,034.87, and hit a record intraday high.

European shares ended at a record high. A jump in Glencore GLEN.L helped put the STOXX 600 on its longest weekly winning streak since May. The pan-European STOXX 600 .STOXX index rose 0.97%.

DOLLAR, TWO-YEAR YIELDS UP

After the jobs report the dollar initially gave up almost all the day's gains versus a basket of major currencies =USD, having risen by nearly 0.2% earlier. The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, was last up 0.26% at 99.13.

Interest rate sensitive two-year Treasury yields were higher after the data, while 10-year yields were last down slightly. The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Fed, rose 5 basis points to 3.538%, from 3.488% late on Thursday. The yield on benchmark U.S. 10-year notes US10YT=RR fell 1.2 basis points to 4.171%.

In commodities, crude oil ended sharply higher. Brent futures LCOc1 rose $1.35, or 2.18%, to settle at $63.34 per barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained $1.36, or 2.35%, to $59.12.

Investors have become more convinced that production in Venezuela, even under U.S. control, may not rise meaningfully for some time.

Copper prices rose, extending recent gains on renewed bets on a future demand boost, while aluminium hit its highest since April 2022.

TRUMP'S TARIFFS

Investors had been bracing for a possible U.S. Supreme Court ruling on the legality of Trump's tariffs.

But the court is expected to issue its next rulings on Jan. 14. The court indicated on its website on Friday that it could release decisions in argued cases when the justices take the bench during a scheduled sitting next Wednesday.