U.S. stocks rally on robust jobs report

U.S. stocks traded sharply higher in the morning session on Friday, as investors cheered a better-than-expected jobs report.

At midday, the Dow Jones Industrial Average gained 156.01 points, or 0.85 percent, to 18,508.06. The S&P 500 rose 16.59 points, or 0.77 percent, to 2,180.84. The Nasdaq Composite Index surged 55.58 points, or 1.08 percent, to 5,221.82.

U.S. total nonfarm payroll employment rose by 255,000 in July, beating economists' estimates of 180,000, and the unemployment rate was unchanged at 4.9 percent, the Labor Department reported Friday.

Traders kept a close eye on the nonfarm jobs report for more clues on the U.S. Federal Reserve's next move.

If the U.S. labor market is robust enough, analysts said the Fed might raise interest rates later this year.

Atlanta Fed President Dennis Lockhart said earlier this week that he did not rule out a rate increase at the central bank' s next meeting in September.

U.S. stocks closed narrowly mixed after wavering in a tight range Thursday, as investors digested a rate cut decision by the Bank of England (BoE). Enditem