Another sign of the optimism on trading floors came with the Nasdaq climbing to within spitting distance of its all-time high yesterday, while the S&P is less than 10 per cent short of its own record.
Market participants now turn their focus to the U.S. Federal Reserve, at whose monetary policy meeting next week the latest jobs data will nearly certainly be discussed.
In New York, the Dow Jones industrial average was up 116.52 points at 25,591.54. The Russell 2000 index picked up 0.9%, to 1,418.21. The U.S. Bureau of Economic Analysis released economic data which showed that the United States trade balance deficit rose 16.7% in April, coming in at -$49.4 billion for the month.
USA nonfarm payrolls rose by 2.509 million jobs last month after a record plunge of 20.687 million in April. Economists say it may show a loss of 8 million jobs, which would be a deceleration from April's loss of 20.5 million jobs.
American Airlines jumped 20.5%, tacking even more gains onto its 41.1% surge a day before when it said it would fly more of its regular USA schedule in a bet that fliers will return to the skies.
Vaccine maker Novavax Inc jumped 7.2 per cent after saying it would receive up to US$60 million from the U.S. Department of Defense to fund manufacturing of its COVID-19 vaccine candidate.
Advancing issues outnumbered decliners by a 2.97-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.
Overnight, the S&P 500 lost 0.3% to 3,112.35 after being on track earlier in the day for its longest winning streak since December.
North American equity markets were firmly in rally mode after surprise jobs gains on both sides of the border.
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"I thought General Mattis's words were true and honest and necessary and overdue", Murkowski told reporters at the US Capitol. Mattis announced his resignation after Trump made a decision to pull troops from Syria in December 2018.
The broader All Ordinaries index (^AORD) had also posted losses of 0.37 per cent at midday. It had also been showing much more caution than stocks recently.
Hopes for a swift economic recovery sank USA government bonds, which had reached historic highs on fears that the pandemic would erode consumer demand.
"This is completely out of expectations", said Subadra Rajappa, head of US rates strategy in Societe Generale, New York.
The yield on the 10-year Treasury rose to 0.81% from 0.76% late Wednesday. "This is a tremendously positive step in the right direction, and probably points to a faster recovery, at least in the jobs market, than people had expected". Their profits tend to be very closely tied to the strength of the economy.
Losers outpaced gainers 249 to 212, with 1.64 billion shares worth $2.19 billion changing hands.
European stocks were weaker after the European Central Bank said it expects the region's economy to shrink 8.7% this year due to the pandemic.
Tokyo's Nikkei 225 index gained 0.4% to 22,790.65 after opening lower.
Campbell Soup Co beat earnings expectations and hiked its full-year forecast, but troubles meeting surging consumer demand sent its shares down 6.1%.
In other trading, a barrel of US crude oil for delivery in July fell 5 cents to $37.36 per barrel in electronic trading on the New York Mercantile Exchange.