The Standard & Poor's 500 index fell 1.9% this week as data showing stronger-than-expected December job growth curtailed hopes for interest rate cuts this year.

The market benchmark ended Friday's session at 5,827.04. The weekly move came in four sessions as the US stock market was closed on Thursday for a national day of mourning honoring former President Jimmy Carter.

This marks the S&P 500's second consecutive weekly drop. It is now down 0.9% for the month and year.

Government data showed the US economy added more jobs than anticipated in December while the unemployment rate unexpectedly declined. Nonfarm payrolls rose by 256,000 last month, surpassing Bloomberg's consensus estimate for an increase of 165,000. The unemployment rate fell to 4.1% from November's 4.2%. Analysts expected the rate to stay at 4.2%.

The real estate sector was hit hardest this week, falling 4.1%, followed by a 3.1% decline in technology and a 2.7% drop in financials.

Among the real estate sector's decliners, shares of BXP (BXP) and Federal Realty Investment Trust (FRT) shed 9% and 7.3%, respectively.

In technology, shares of ON Semiconductor (ON) fell 16% amid negative analyst actions. The company received an investment rating downgrade from Truist and price target reductions from analysts at Deutsche Bank and Goldman Sachs.

Energy led gainers, rising 0.9%, followed by a 0.5% advance in health care and a 0.1% increase in materials.

The energy sector's climb coincided with a rise in crude oil futures. Gainers included shares of Texas Pacific Land (TPL), which rose 7.4% on the week, and Devon Energy (DVN), up 6.1%.

Investors next week will be focused on inflation data, with the December producer price index expected on Tuesday, followed by the December consumer price index on Wednesday. Later in the week, December retail sales are due on Thursday while December housing starts and building permits are set to be released on Friday, among other reports.

Also, the earnings reporting season will begin for the last three months of 2024. Results are expected from a number of financial companies including JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), Bank of America (BAC) and Morgan Stanley (MS). UnitedHealth Group (UNH) is also scheduled to release quarterly results.