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S&P has broken into new all-time highs because of the jobs report twice in a row

Stocks get a boost from jobs

For the second month in a row Friday, the S&P 500 shot to an all-time high after a surprisingly strong jobs report.

Not long after the government reported a hefty 255,000 jobs for July Friday morning, the S&P 500 broke above its high of 2,178.29 and continued to trade there throughout the day.

This follows the similar reaction to last month's June jobs report on July 8. The S&P 500 broke to a new high the following Monday, cracking a level it held since May 2015.

Between the release of the two reports, the S&P struggled in a fairly tight trading range, weighed down by falling oil prices but lifted by a surge in technology. Over the past month, U.S. crude price have fallen nearly 13 percent, while the S&P's tech sector has surged more than 10 percent.

SPX tech sector (blue) vs WTI (green) in past monthSource: FactSet

The July report came in well above the expected 180,000.

"When you see the market rally on positive news, ... I find it very encouraging," said Randy Frederick, managing director of trading and derivatives at Charles Schwab, adding he thinks the market is ready for a Federal Reserve rate hike. "I think we're past the point of wanting lower rates to keep equities up."

Market expectations for a September rate hike were 18 percent after the jobs report was released, up from 9 percent on Thursday, according to the CME Group's FedWatch tool. For December, the market sees a 39.4 percent probability of a rate hike.

Still, Frederick said it will be tough for the market to continue rallying, adding he expects the S&P to return to its recent trading range. But "volatility is at a record low, so there's not much reason to think we're heading into a massive sell-off."

JJ Kinahan, chief strategist at TD Ameritrade, said the technology sector, which was trading at its highest level since September 2000, needs to continue higher until at least next Friday — when retail sales will be released — for the S&P to keep setting all-time highs. " Financials started this rally and, since then, technology has taken over."

— CNBC's Patti Domm and Christopher Hayes contributed to this report.