The Nasdaq and the S&P 500 rose to record closing highs Friday following upbeat forecasts from Lululemon Athletica and other companies and as U.S. jobs data fueled expectations the Federal Reserve would cut interest rates this month.

The Dow finished lower, as a drop in UnitedHealth Group shares weighed on the index.

The S&P 500 consumer discretionary index led gains among sectors, boosted by Lululemon.

Shares of Lululemon Athletica jumped after the sportswear maker increased full-year forecasts.

Also in the consumer discretionary space, shares of cosmetics retailer Ulta Beauty advanced after the company raised its annual profit forecast.

The U.S. Labor Department report showed job growth surged in November, but an increase in the unemployment rate to 4.2% pointed to an easing labor market.

"It does support the case for the Fed to continue to cut rates in the December meeting and into the first quarter," said Bill Northey, senior investment director at U.S. Bank Wealth Management in Billings, Montana.

According to preliminary data, the S&P 500 gained 13.65 points, or 0.22%, to end at 6,088.76 points, while the Nasdaq Composite gained 153.96 points, or 0.78%, to 19,854.69. The Dow Jones Industrial Average fell 133.85 points, or 0.30%, to 44,637.48.

Following the data, U.S. rate futures were pricing in roughly a 90% chance the Fed will lower interest rates by 25 basis points at its Dec. 17-18 policy meeting, according to LSEG calculations which previously saw just a 72% chance.

The Fed has lowered rates by 75 basis points since September, when it launched its easing cycle.

Fed Governor Michelle Bowman said inflation risks remained, which augured caution with rate decisions.

Shares of health insurance companies including UnitedHealth extended declines from the previous session, two days after Brian Thompson, CEO of UnitedHealth's health insurance unit, was fatally shot outside a Manhattan hotel.

The shooter remained at large and his motive has not been determined. The death sparked comments on social media over frustrations with the U.S. health insurance system.

Among other stock moves, shares of Facebook-owner Meta Platforms were up after a U.S. appeals court upheld a law requiring China-based ByteDance to divest its popular short video app TikTok by early next year or face a ban.