US stocks ticked up on Friday following stronger than expected employment numbers, with investors weighing the implications on interest rates going forward.

The Dow Jones Industrial Average ended up 0.1 percent at 37,466.

The S&P 500 advanced 0.2 percent to 4,697, and the Nasdaq Composite Index closed 0.1 percent higher at 14,524.

The gains came despite government data showing the US economy added 216,000 jobs in December -- more than analysts expected.

The unemployment rate remained at 3.7 percent, a historically low level.

This wraps up a solid year for the labour market, buoying hopes of a "soft landing" in which inflation comes down without a major downturn.

Jack Ablin, chief investment officer at Cresset, noted: "A strong labor market is good news, it really helps make the case for a soft landing."

"There is nothing that would suggest that inflation is going to go up," he added.

But major indices were volatile on Friday.

While the data bodes well for the economy, it could also mean the Federal Reserve may hold rates at a higher level for longer, to sustainably lower inflation.

"The key takeaway from the report is that it wasn't weak, so the market is going to have to grapple with the notion that the Fed may not cut rates as many times in 2024 as the market had come to expect at the end of 2023," said Briefing.com.

Economist Peter Cardillo of Spartan Capital added that a strong jobs report would "put pressure on yields."

Treasury note yields are closely watched as a benchmark on interest rates.

On Friday, survey data also showed that services sector activity continued expanding in December.

Among individual companies, Apple shares ended 0.4 percent lower.

The tech giant's stock has been downgraded by analysts and on Friday, the New York Times reported that the Justice Department is coming close to filing an antitrust case against the company. (AFP)