Of the 11 major sectors in the S&P 500, all but healthcare closed in positive territory, with industrials and financials enjoying the biggest percentage gains. The S&P 500, a proxy for the performance of United States retirement and college savings accounts, gained 81.58 points, or 2.62 percent, to settle at 3,193.93.
The S&P 500 is on track for a third week of gains and the dollar held at the lowest since March after the unemployment rate fell in May to 13.3 per cent, below the average analyst forecast for 19 per cent.
Boeing Co also surged 11.5 percent on hopes of a pickup in air travel a day after American Airlines Group Inc and United Airlines said they would boost their USA flight schedules in July.
Market analysts are now looking to the US Federal Reserve, which is scheduled to hold a monetary policy meeting next week during which the latest jobs data will nearly certainly be discussed.
Drugmaker Novavax Inc advanced 3.7% following its announcement that the U.S. Department of Defense would give it up to $60 million to manufacture its COVID-19 vaccine candidate.
The May Department of Labor jobs report defied even the most optimistic expectations among economists, who had been expecting job losses of more than eight million and a jobless rate of 20 percent or higher.
Advancing issues outnumbered decliners by a 8.81-to-1 ratio on the NYSE and by a 4.91-to-1 ratio on the Nasdaq.
The S&P 500 has posted 26 new 52-week highs and no new lows; the Nasdaq Composite Index recorded 89 new highs and three new lows.
Markets are riding a wave of enthusiasm as investors bet on a global economy awash with stimulus. Economists polled by Reuters had forecast the unemployment rate jumping to 19.8% in May and payrolls falling by 8 million jobs.
MSCI's gauge of stocks across the globe gained 2.04%. It had also been much slower to rise than stocks recently, but the 10-year yield is now close to its highest level since late March.
Nasdaq just missed setting a new closing record high.
A spate of grim economic data was not as bad as economists feared, with ADP reporting many fewer private-sector job cuts in May than expected.
The MSCI Emerging Market Index gained 0.9 per cent.
Hopes for a swift economic recovery sank USA government bonds, which had reached historic highs on fears that the pandemic would erode consumer demand.
U.S. Treasurys remained under pressure, with selling driving the yield on the 10-year note up to 0.903 percent. JPMorgan Chase, Citigroup, Wells Fargo and Bank of America all rose at least 4%.
Markets got some traction from hopes for more monetary and government stimulus as the European Central Bank announced a commitment to buying 600 billion euros ($680 billion) more of bonds, almost doubling its asset purchasing program.
Hopes for an economic recovery sent oil prices surging.