The Dow Jones Industrial Average gained 219.37 points or 0.90 per cent to 24 635.21. The S&P 500 was up 29.35 points or 1.08 per cent to 2 734.62 Xinhua news agency reported.
The Nasdaq Composite Index increased 112.21 points or 1.51 per cent to 7 554.33.
US total nonfarm payroll employment increased by 223 000 in May much higher than economists estimate of 188 000 and the unemployment rate edged down to 3.8 per cent the Labor Department said on Friday.
Employment continued to trend up in several industries including retail trade health care and construction.
In May average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents to $26.92. Over the year average hourly earnings have increased by 71 cents or 2.7 per cent according to the department.
Economic activity in the manufacturing sector expanded in May and the overall economy grew for the 109th consecutive month according to the latest report released by the Institute for Supply Management (ISM).
The manufacturing index also known as the purchasing managers index (PMI) registered 58.7 per cent an increase of 1.4 percentage points from the April reading of 57.3 per cent.
A reading above 50 for the index indicates expansion in the manufacturing sector and a reading below 50 signals contraction.
--IANS pgh/