STORY: Wall Street's main indexes ended higher on Friday, with the S&P 500 and Nasdaq again notching record high closes.

The Dow added nearly two-tenths of a percent, the S&P gained more than half a percent and the Nasdaq climbed nine-tenths of a percent.

The rally was fueled by megacap stocks such as Microsoft which rose nearly 1.5% to end at a record high.

Meta Platforms also scored an all-time closing high, gaining nearly 6% to push the information technology sector to a new high.

But Melissa Brown, managing director of applied research at Simcorp, says we're still at a point where too few names are powering the market gains.

"At some point, you know, it gets a little concerning that, you know, how... how long can, you know, one sector or a handful of stocks really drive the market? It also makes it very difficult for active managers, for mutual funds, for pension funds, to beat the market because there's so little opportunity. You know, you've got to have your whole portfolio in... or half your portfolio in one sector."

Labor Department data showed the U.S. continued to add jobs, but at a slower pace in June, and the unemployment rate rose to an over 2-1/2-year high, while wage gains slowed.

Investors expect the data could stir more active debate on rate cuts when the Federal Reserve meets later this month. Odds of the central bank cutting rates in September jumped to nearly 80% on Friday, CME's FedWatch Tool showed.

Other stocks on the move included Bank of America, Wells Fargo and JPMorgan Chase - which dropped between 1.2% to 1.7%.

And shares of Macy's surged 9.5% after a report said Arkhouse Management and Brigade Capital raised their bid to buy the department store chain for about $6.9 billion.