NEW YORK -- U.S. stocks are rising sharply Friday following strong jobs figures, while investor concerns about inflation eased as wage growth slowed down slightly. Technology companies are setting more records as the Nasdaq composite regains the last of its losses from one month ago. Banks are rising in tandem with interest rates and industrial and health care companies are also climbing.

KEEPING SCORE: The S&P 500 index climbed 40 points, or 1.5 per cent, to 2,778 as of 2:45 p.m. Eastern time. The Dow Jones industrial average rose 369 points, or 1.5 per cent, 25,265. The Nasdaq composite jumped 110 points, or 1.5 per cent, to 7,538. The Russell 2000 index of smaller-company stocks picked up 23 points, or 1.5 per cent, to 1,595.

JOBS: U.S. employers added 313,000 jobs in February. Perhaps more importantly for Wall Street, wages didn't rise as much as investors had fared. Hourly wages grew 2.6 per cent compared to a year ago, less than the 2.9 per cent the government reported a month ago. Investors worried that that was a sign inflation was going to start rising at a faster pace. If so, the Federal Reserve would likely raise interest rates more rapidly in response, which could slow down economic growth.

January's wage figure was also reduced slightly on Friday.

Katie Nixon, chief investment officer for Northern Trust Wealth Management, said the combination of strong job gains and a slightly slower increase in pay was exactly what Wall Street wanted.

"I think the fears of wages getting out of control in this point in the cycle ... were squashed," she said.

MARKET REACTION: Facebook rose $2.62, or 1.4 per cent, to $184.96 and Google's parent company Alphabet added $24.11, or 2.1 per cent, to $1,153.49. Technology companies have led the market's rally over the past year.

The S&P 500 is still about 3 per cent below its highest close, which came on Jan. 26, and none of the other major sectors have recovered all of their early February losses.

BONDS: Bond prices dropped. The yield on the 10-year Treasury note rose to 2.89 per cent from 2.85 per cent. That helps banks, because it allows them to charge higher interest rates on mortgages and other kinds of loans. High-dividend stocks like utilities and phone companies fell. Those stocks are often compared to bonds and they tend to fall when yields move higher, as higher yields make them less appealing to investors seeking income.

BAD NEWS, GEOFFREY: Toymakers fell after Reuters reported that Toys R Us is getting ready to liquidate its U.S. operations. Reuters said the chain, which filed for bankruptcy protection, has been unable to find a buyer or restructure its debt. Despite its struggles, it's still a major retailer of toys. Hasbro dropped $1.71, or 1.8 per cent, to $91.67 while Mattel sank $1.16, or 6.3 per cent, to $14.81.

TARIFF IMPACT: Stocks slumped this month after Trump said he would place tariffs on imported steel and aluminum, but they've recovered some of their losses after he granted exemptions to Canada, Mexico, and potentially other countries.

Nixon said the administration appears to be setting itself up to take a harder line in China. While China isn't a major exporter of steel to the U.S., trade disputes between the two countries aren't uncommon and the government is currently investigating China's treatment of intellectual property held by U.S. companies.

"Clearly the target here is China and how that unfolds will be important for markets," Nixon said. "The collateral damage could be relatively wide unless it's done carefully, and so far the process has not been very careful."

BARACK BOOST: Netflix rose $11.55, or 3.6 per cent, to $328.55 after the New York Times reported that the streaming service is negotiating with Barack Obama to have the former president and his wife Michelle produce shows. The two sides haven't confirmed that they are in talks. GBH Insights analyst Daniel Ives said a deal with the Obamas would be "another major win for Netflix" as it tries to launch more and more original shows.

ENERGY: Energy companies climbed as benchmark U.S. crude added $1.92 or 3 per cent, to $62.04 a barrel in New York, while Brent crude, used to price international oils, rose $1.88, or 3 per cent, to $65.49 a barrel in London.

Elsewhere, wholesale gasoline added 4 cents to $1.90 a gallon. Heating oil rose 3 cents to $1.89 a gallon. Natural gas lost 4 cents to $2.73 per 1,000 cubic feet.

OVERSEAS: U.S. and South Korean officials said Trump might meet with North Korean leader Kim Jong Un by May to negotiate a potential end to Pyongyang's nuclear weapons program. The news helped send South Korea's Kospi up 1.1 per cent. Other Asian indexes also rose. Japan's benchmark Nikkei 225 gained 0.5 per cent and. Hong Kong's Hang Seng also rose 1.1 per cent.

In Europe, France's CAC 40 rose 0.4 per cent while Germany's DAX fell 0.1 per cent. The FTSE 100 in Britain rose 0.3 per cent.

METALS: Gold rose $2.30 to $1,324 an ounce. Silver added 11 cents to $16.61 an ounce. Copper jumped 6 cents, or 1.9 per cent, to $3.14 a pound.

CURRENCY: The dollar rose to 106.80 yen from 106.24 yen. The euro rose to $1.2317 from $1.2306.