Updated from 4:03 p.m. EST

Stocks closed mixed Friday, following a volatile morning of trading, as investors speculated on how February's weak jobs market might influence the Fed's policy on interest rates.

The Dow Jones Industrial Average added 7.55 points to 10,595.55; the S&P 500 rose 1.99 points to 1156.86, just shy of a new two-year high; and the Nasdaq Composite lost 7.48 points to 2047.63, but snapped a six-week skid. All three indices managed to recover from sharp opening losses following the release of the nonfarm payroll data.

Volume on the New York Stock Exchange approached 1.4 billion shares, and advancers outnumbered decliners by 2 to 1. Over 2 billion shares changed hands on the Nasdaq, where advancers and decliners were about even.

The Dow ended a two-week losing streak with a fractional gain, while the S&P 500 rose for the second week in a row, adding more than 1%.

In other markets, the 10-year Treasury note rallied, gaining 1 13/32, while the yield fell to 3.84%, its lowest level since mid-July. At one point in the session, the one-day move in the yield was the biggest in 2 1/2 years.

In currencies, the euro surged against the dollar, buying $1.2376, compared with $1.2192 at Thursday's close. The dollar gained against the yen, buying 112.07 yen compared with 111.09 at Thursday's close.

"This keeps the Fed under wraps; it is not going to raise rates now," said Paul Nolte, director of investments at Hinsdale Associates. "Lower rates are good for the market, but, jeez, shouldn't we have a lot more employment right now? That's not so good. It's one of those good news/bad news type of mentalities and no one's really figured out what to do about it."

Nolte is among the many strategists who think the market is in a corrective mode. "The economy is growing, but it's not satisfying a lot of people. Rightly or wrongly, people are focused on job creation," he said. "I think the markets are destined to trade sideways to down for the next couple of months. It's going to be kind of sloppy through much of the year until we get close to the election."