NEW YORK, Dec 8 (Reuters) - A gauge of global stocks climbed on Friday, poised for its sixth straight week of gains, while U.S. Treasury yields rose after a strong U.S. jobs report forced markets to modify expectations for the timing of rate cuts by the Federal Reserve.

U.S. job growth accelerated in November, with the Labor Department's employment report showing nonfarm payrolls increased by 199,000 jobs last month, above the 180,000 estimate of economists polled by Reuters, after rising by an unrevised 150,000 in October. The unemployment rate fell to 3.7% from the near two-year high of 3.9% in October.

Ahead of the payrolls report, a run of labor market data this week indicated some softening in the jobs market, while other reports in recent weeks showed a cooling of inflation and led markets to increase expectations the Federal Reserve would have the leeway to cut interest rates as soon as March.

Expectations for a March cut of at least 25 basis points (bps) slipped to about 46%, according to CME's FedWatch Tool, down from about 65% on Thursday.

"Good news is good news for the economy, but it’s bad news for what it might mean for the Fed. It was a slightly warmer than expected labor market report, but it isn’t exactly too hot to handle," said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin

"Wages aren’t stoking the flames of inflation, so the Fed should just ignore this and focus on inflation."

Other data from the University of Michigan showed U.S. consumer sentiment improved much more than expected in December, snapping four straight months of declines, as households saw inflation pressures easing.

On Wall Street

, stocks advanced in choppy trade and the S&P 500 hit a four-month high, led by energy shares as oil prices bounced. The Dow Jones Industrial Average rose 109.47 points, or 0.30% , to 36,227, the S&P 500 gained 16.15 points, or 0.35 %, to 4,601.74 and the Nasdaq Composite gained 62.39 points, or 0.44 %, to 14,402.38.

U.S. Treasury yields shot higher following the payrolls report. The yield on the benchmark U.S. 10-year Treasury note rose 10 basis points to 4.23%, on track for its biggest one-day gain since Nov. 9. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, surged 13 basis points, its biggest daily jump since July 14 to 4.715%.

European shares closed

at their highest since February 2022 with the STOXX 600 index up 0.80%. MSCI's gauge of stocks across the globe gained 0.27% and was poised for a sixth straight weekly gain, its longest streak in four years.

Along with recent economic data, comments from Fed officials, including Chair Jerome Powell, have fueled investor speculation about the timing of the central bank's pivot to a rate cut. The Fed's next policy meeting is on Dec. 12-13, while the next policy announcement from the European Central Bank (ECB) is on Dec. 14. Expectations have also grown the ECB was at or near the end of its rate hike cycle and a cut is on the horizon.

The dollar index, which tracks the greenback against a basket of six currencies, gained 0.29%, to 103.96 while the euro was down 0.31% on the day at $1.0761.

Crude prices bounced after a recent slump but oil benchmarks were on track for a seven-week decline, the longest in five years, after Saudi Arabia and Russia lobbied OPEC+ members to join output cuts.

U.S. crude settled up 2.73% at $71.23 per barrel and Brent settled at $75.84, up 2.42% on the day.

Gold fell

1.35% to $2,000.94 an ounce after dropping to $1,994.49, its lowest since, Nov 24, as the dollar and yields climbed following the payrolls report.

(Reporting by Chuck Mikolajczak, Editing by Nick Zieminski and Susan Fenton)