The S&P 500 and Dow Jones Industrial Average logged minor losses Friday, though the Nasdaq eked out a closing record and major indexes added to their string of weekly gains as investors mostly shrugged off a September jobs report that showed the first monthly drop in payrolls in seven years.

What stock benchmarks are doing

The Dow Jones Industrial Average DJIA, -0.87% declined less than 2 points to 22,773.67, just barely ending a seven-day win streak. The S&P 500 SPX, -1.11% fell 2.74 points, or 0.1%, to finish at 2,549.33, putting an end to an eight-day streak that has taken it to repeated records. Eight of the primary 11 S&P 500 sectors ended lower on the day.

The Nasdaq Composite Index COMP, -1.07% switched between small gains and losses throughout the session but ended slightly higher, eking out a recrod close. The tech-heavy index ended up rose 4.82 points, or 0.1%, to 6,590.18.

All three benchmarks posted solid weekly gains. The Dow industrials rose 1.7% while the S&P 500 was up 1.2%. Both have risen for four straight weeks. The Nasdaq rose 1.5% in its second straight weekly gain.

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What is driving markets?

Nonfarm payrolls shrank by 33,000 in September, the first monthly decline since 2010 and sharply below analyst expectations for an increase of 75,000 jobs. However, the month’s results were undercut by hurricanes Harvey and Irma, and the difficulty analysts had in analyzing the impact the storms had on the labor market allowed markets to shrug off the surprise contraction.

The unemployment rate fell to 4.2% from 4.4% while wages increased by 0.5% to an average of $26.55 an hour, per Labor Department data. Hourly pay saw a 2.9% year over year rise, up from 2.7% in August. Those gains, too, were likely affected by the hurricanes.

See:Why financial markets focused on fatter paychecks, ignored payrolls drop in jobs report

Bond yields and the dollar spiked immediately after the report, but subsequently trimmed or erased those gains. The 10-year Treasury note TMUBMUSD10Y, 0.701% touched is highest yield since around July at 2.39%, but then slipped back. The dollar DXY, +0.03% strengthened above 94, before turning lower.

Read:Hurricanes may make it look like U.S. ‘lost’ jobs for the first time since 2010

See:Tropical storm Nate headed for Gulf Coast, leaves 22 dead in Central America

What market strategists are saying

• “Traders were pricing in a weak print given the severe disruption caused by Hurricanes Harvey and Irma, and even though it came in far worse than expected the markets will go into the weekend feeling there is no reason to panic,” said Marcus Bullus, trading director of MB Capital. “The unemployment rate nudged down and wage growth went up in September, underlining how the headline figure is an anomaly.”

• “Markets had been ludicrously overbought, with the S&P 500 rising for eight straight days by Thursday. Markets could have dropped even if we did not have a negative reading on the jobs report,” said Michael Antonelli, equity sales trader at Robert W. Baird & Co.

“The reaction on the market suggests that nothing has changed when it comes to rate hikes in December,” Antonelli said.

What other data and Fed speakers are ahead?

• New York Fed President William Dudley, speaking on CNBC said he was open to raising rates in December. Dallas Fed President Rob Kaplan, also speaking on CNBC, said he was “open minded” about an interest-rate increase in December, but he was “not there yet.”

Which stocks were in focus?

Shares of data-center operator Switch Inc. SWCH, -1.29% priced its initial public offering higher than expected Thursday evening. The Las Vegas-based data-center company said it would sell 31.25 million shares at $17 apiece, after previously stating a target range of $14 to $16. Shares rose 22.5% in their trading debut.

Costco Wholesale Corp. COST, -0.86% fell 6% even as the wholesale retailer reported lower gross margins, even as quarterly profits topped Wall Street estimates.

Yum China Holdings Inc. YUMC, -1.36% rose 2.1% as the Yum Brands Inc. YUM, -1.70% spinoff announced earnings that included its first dividend and an increased stock-buyback plan. The operator of KFC and Pizza Hut restaurants also announced plans for a new chief executive officer. Yum shares rose 1.8%.

What other assets are doing

European stocks SXXP, -0.66% traded mostly lower, with Spain’s IBEX benchmark IBEX, -2.20% giving back some of Thursday’s rebound as investors assessed the latest developments in the Catalonia-Spain standoff.

Australian stocks led gains in the Asia-Pacific region ADOW, +0.33% on Friday, boosted by Thursday’s climb in commodity prices and rises for financial stocks.

WTI oil futures US:CLX7 ended lower as tropical storm Nate strengthens, and is due to hit the Gulf Coast over the weekend. Under pressure, the British pound GBPUSD, +0.02% was set for its worst week in a year on talk of an early U.K. election. Gold futures US:GCZ7 rebounded to trade higher.

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Barbara Kollmeyer and Mark DeCambre contributed to this article.