The U.S. market surged following news that unemployment records had reached their lowest rates since 2008.  The number of Americans seeking unemployment benefits fell 42,000 last week to 338,000, the Labor Department said on Friday.

Despite a slow trading day as investors return to the floor after the 2013 holiday, the financial industry is cheering as all metrics point to fewer Americans losing their jobs.  About 1.96 billion shares were traded with three days left in the year’s trading session, a surprise to economists who predicted a more modest showing.  The daily average remains at 3.3 billion shares.

Among the positive indicators was the 10-year Treasury note, a traditional bellwether for many kinds of loans.  The rates crossed above the 3 percent mark, its highest point since September.  The note’s yield was up 2.99 percent from 2.98 percent on Tuesday.

Other notable improvements were the Dow Jones industrial average, up 122.33 points to 16,479.88, its 50th highest close this year.  Its annual performance is up 25.8 percent in 2013, on target to have its best performance since 1996.

The Standard & Poor’s 500 index is also on the rise, gaining 8.70 points to 1,842.02, and will also likely have its best year since 1997.  The NASDAQ composite closed with a increase of 11.76 points,  to 4,167.18.

Economists have been optimistic since indicators starting showing promise in November, giving investors hope that the U.S. recovery was beginning to gain momentum.  The economy got an additional boost last week when the Federal Reserve announced it was scaling back its bond-buying program.

“There’s a silver lining to see bond yields rise like this, because it’s a sign that the economy is getting stronger,” said John De Clue, chief investment officer of U.S. Bank Wealth Management.

“We are starting to take the medication away from the bond market, but it’s important to note that yields are still at historically low levels,” said Dan Veru, Chief Investment Officer of Palisade Capital Management, also sharing insight on the news.

The Bureau of Labor and Statistics additionally reported on Friday that the economy added 203,000 jobs in November.  All measurements point to an unexpectedly historic year for 2013’s economic performance.