Wall Street closed out a winning week Friday as the S&P 500 notched its fifth gain in a row and its biggest weekly increase since November.

The benchmark index rose 0.4% and ended the week 4.6% higher, more than making up for its decline in January. The latest gain nudged the S&P 500 to another all-time high. The Nasdaq composite also capped the week with a record high. Small -company stocks fared even better than the broader market, a sign that investors are feeling more optimistic about the economy.

The market largely shrugged off a dismal jobs report for January that showed the U.S. economy...