U.S. stocks rose after hiring data that topped forecasts boosted optimism in the world’s largest economy. The U.S. dollar fell.

The S&P 500 Index halted a two-day drop as the report showed the labour market can support growth without sparking inflation, giving cover to the Federal Reserve’s plan to remain patient on rates. Treasuries erased losses, sending the 10-year yield down to 2.52 per cent. Tesla Inc. (TSLA.O) rose after raising US$2.35 billion through debt and stock offerings. Amazon.com Inc. climbed as Warren Buffett told CNBC Berkshire Hathaway Inc. has been buying the shares.

Traders sifted through jobs data for clues on the pace of U.S. expansion after the Fed pushed back on expectations that its next move would be a rate cut. Unemployment fell to a fresh 49-year low amid surprisingly strong hiring and cooler-than-projected wage gains. The Fed is likely unconcerned with the stronger-than-expected job creation number, but is keeping a close eye on the change in average hourly earnings, according to Chris Zaccarelli, the chief investment officer of Independent Advisor Alliance LLC.

“It’s our expectation that the Fed is willing to let the economy run ‘hot’ –- and stay on the sidelines –- until inflation becomes a much greater concern, Zaccarelli wrote. “This should be positive for equities. But the stock market is still vulnerable to pullbacks because of trade policy, dollar strength or an as-yet-unknown risk that may present itself.”

The fed funds futures market briefly showed a slight reduction in odds for a Federal Reserve rate cut this year, but subsequently shifted to show a slightly lower end-of-year rate for the Fed’s benchmark.

Elsewhere, oil steadied while copper was on course for its biggest weekly drop since August. Bitcoin climbed to its highest level since November.

These are some of the main moves in markets:

Stocks

The S&P 500 Index increased 0.5 percent to 2,933.30 as of 10:21 a.m. New York time. The Dow Jones Industrial Average increased 0.3 per cent. The Stoxx Europe 600 Index jumped 0.3 per cent. The MSCI Asia Pacific Index increased 0.3 per cent.

Currencies

The Bloomberg Dollar Spot Index declined 0.2 per cent. The euro increased 0.1 per cent to US$1.1188. The British pound climbed 0.3 per cent to US$1.3077. The Japanese yen advanced 0.3 per cent to 111.22 per dollar.

Bonds

The yield on 10-year Treasuries decreased two basis points to 2.52 per cent. Germany’s 10-year yield fell two basis points to 0.01 per cent. Britain’s 10-year yield dipped less than one basis point to 1.184 per cent.

Commodities

The Bloomberg Commodity Index climbed 0.4 per cent. West Texas Intermediate crude increased 0.3 per cent to US$61.97 a barrel. Gold jumped 0.9 per cent to US$1,283.10 an ounce.