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

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Stocks gain after jobs data

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December nonfarm payrolls rise less than forecast

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Dollar initially pares gains after data

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European stocks end at record high

(Updates to afternoon)

By Caroline Valetkevitch

NEW YORK, Jan 9 (Reuters) - Stock indexes gained and the dollar was higher on Friday after data showed the U.S. economy created fewer jobs than expected in December, supporting the view the Federal Reserve would leave interest rates unchanged this month.

The S&P 500 hit an intraday high and the STOXX 600 ?ended at a record.

Chip stocks

rose and helped to boost the S&P 500, with Intel (INTC) gaining after U.S. President Donald Trump said he had a "great meeting" with the chipmaker's Chief Executive Officer, ?Lip-Bu Tan.

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%.

Fed funds futures traders are now pricing in only a 4.8% chance of a rate cut at the Fed's Jan. 27-28 meeting, down from 11.6% before the data. The ?next cut is unlikely before at least April.

"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.

The Dow Jones Industrial Average rose 252.84 points, or 0.51%, to 49,518.95, the S&P 500 rose 53.23 points, or 0.77%, to 6,974.69 and the Nasdaq Composite rose 216.38 points, or 0.92%, to 23,696.40.

All three indexes are ?set for weekly gains in the first full trading week of 2026, with the Dow on track for its biggest weekly gain since the last week of November.

MSCI's gauge of stocks across the globe rose 6.01 points, or 0.58%, to 1,035.46.

European

shares ended

at a record high. A jump in Glencore (GLCNF) helped put the STOXX 600 on its longest weekly winning streak since May. The pan-European STOXX 600 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, having ?risen by nearly 0.2% earlier. The dollar index, 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 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 fell 1.2 basis points to 4.171%. In commodities, crude oil ended sharply higher. Brent futures rose $1.35, or 2.18%, to settle at $63.34 per barrel, while U.S. West Texas Intermediate (WTI) crude 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.

SUPREME COURT WON'T RULE ON TRUMP'S TARIFFS FRIDAY 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.

(Reporting by Caroline Valetkevitch in New ?York; additional reporting by Amanda Cooper and Sophie Kiderlin in London and Ankur Banerjee in Singapore; Editing by Barbara Lewis, Hugh Lawson and Nick Zieminski)