U.S. stocks ended the week on an upswing after slowing jobs growth tempered expectations that the Federal Reserve will hike rates again later this month.

The S&P 500 rose 56.27 points, or 0.73%, to 7722.72. The Dow Jones Industrial Average climbed 250.40 points, or 0.49%, to 51176.96. The Nasdaq gained 319.27 points, or 1.19%, to 27190.86, near a record high.

Major indices rose after the Labor Department said the U.S. added just 29,000 jobs in September, well short of expectations. Unemployment ticked up as well, though it remains at a historically low level. The weaker-than-expected result may be a disappointing update on labor market conditions, but it also gives the Fed cover to hold the federal funds rate steady at its upcoming meeting.

Following last month's rate increase, investors had worried that more hikes were around the corner while the labor market remained on good footing. Fed officials have warned in recent weeks that more hikes were likely, but top policy makers also said the need was not urgent.

The September jobs report is a chink in the labor market's armor, raising the bar for how bad upcoming inflation data would have to be for the Fed to justify another hike, according to analysts.

"The Fed can credibly argue that labor cost pressures are abating, reducing urgency for additional hikes," said Chris Osmond, chief investment officer of Fifth Third Wealth Advisors.

Treasury yields initially fell after the payrolls report, but reversed course soon after as tensions between the U.S. and Iran remain high. The 10-year Treasury yield rose 0.043 percentage point to 5.276%, still down from the 24-year high it reached midweek. The 30-year Treasury edged up 0.027 percentage point to 5.629%. The policy-sensitive two-year snapped a three-day losing streak, rising 0.037 percentage point to 4.823%.

Oil prices were little changed, with international benchmark Brent crude ticking down by 0.06% to $102.25. The Group of Seven major economies on Friday agreed to release 100 million barrels of crude oil and fuel from their emergency stocks and forgo export restrictions.

Tesla shares rose 4.7% to $370.59 after the carmaker's third-quarter sales slumped but still beat Wall Street forecasts in a bumpy U.S. market for electric vehicles. Ford Motor's shares slipped after it sold fewer vehicles in the quarter, citing the phase out of two of its models.

Nike's stock fell 3.6% to $33.87 a day after the company said it would shrink operations and cut jobs, with an expectation that sales would continue to drop this fiscal year.

Shares of hard-drive makers Seagate Technology and Western Digital both fell 10% on a report that Japanese rival Toshiba plans to double its production capacity for drives used in AI data centers.

Paramount Chief Executive David Ellison said that after his company acquires Warner Bros. Discovery, he plans to rename the combined entity Skydance. A federal judge approved a deal this week that will allow the $81 billion acquisition to go through.