* Investors digest strong U.S. jobs data, dovish Fed
* Wall Street gains, led by tech, industrial shares
* Pressure on banks keeps European shares sluggish
* Oil slides after hitting two-month high (Updates with close of U.S. markets)
By Lewis Krauskopf
NEW YORK, Feb 4 (Reuters) - A gauge of global stocks hit a two-month high on Monday, as gains for technology and industrial shares fueled a rise on Wall Street, while the U.S. dollar gained for a third straight session against a basket of currencies and U.S. Treasury yields rose.
Oil prices pulled back after reaching their highest levels in roughly two months.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.33 percent, reaching a fresh two-month high.
Investors were parsing the significance for financial markets from Friday's strong U.S. jobs report, which came on the heels of the Federal Reserve saying it would be patient on future rate hikes amid a cloudy outlook for the U.S. economy. are realizing that the Fed is at least going to be friendly here in the near term," said Bucky Hellwig, senior vice president at BB&T (NYSE:BBT) Wealth Management in Birmingham, Alabama.
"Some of these things that were weighing as negatives... namely a tighter Fed, lack of progress on the tariffs, those things are starting to improve or have improved, and as a result there are more reasons to be investing in stocks," Hellwig said.
On Wall Street, the Dow Jones Industrial Average .DJI rose 175.48 points, or 0.7 percent, to 25,239.37, the S&P 500 .SPX gained 18.34 points, or 0.68 percent, to 2,724.87 and the Nasdaq Composite .IXIC added 83.67 points, or 1.15 percent, to 7,347.54.
Technology .SPLRCT and industrials .SPLRCI were the biggest risers among the S&P 500 sectors, as investors braced for another big week of fourth-quarter corporate earnings reports.
The pan-European STOXX 600 index .STOXX rose 0.06 percent as the heavyweight banking sector .SX7E fell following poor results from Julius Baer BAER.S . U.S. dollar strengthened across the board, as investors took heart from Friday's strong payrolls number. dollar index .DXY , which measures the greenback against a basket of currencies. rose 0.27 percent, with the euro EUR= down 0.18 percent to $1.1433.
Improved risk appetite helped lift the dollar to a five-week high against the safe-haven yen JPY= .
U.S. Treasury prices fell in generally thin volume, pressured by upcoming debt supply, as well as indications that inflation expectations are rising. 10-year notes US10YT=RR last fell 10/32 in price to yield 2.7253 percent, from 2.691 percent late on Friday.
Oil prices fell after disappointing U.S. factory data sparked fresh concerns about a slowdown in the global economy. But losses were limited as OPEC-led supply cuts and U.S. sanctions against Venezuela brightened the supply outlook. crude CLcv1 settled down 1.3 percent at $54.56 per barrel and Brent LCOcv1 settled down 0.4 percent at $62.51. (Editing by Dan Grebler and Alistair Bell)