All major S&P 500 sectors advanced, with communication services, industrials and technology among those leading gains.

U.S. Labor Department data showed employers hired far more workers in March than expected and kept steadily lifting wages, suggesting the economy ended the first quarter on solid ground.

The data stoked expectations the Fed will likely delay cutting interest rates given that a recession is nowhere in sight, said Tom Plumb, president and portfolio manager at Plumb Funds in Madison, Wisconsin.

"What we are continuing to see is that a robust economy is not necessarily inflationary, and this labor report, even though it's just for one month, reinforces that there's less likelihood of a recession, which is more important than the expectations of the timing of interest rate reductions," Plumb said.

According to preliminary data, the S&P 500 gained 57.87 points, or 1.12%, to end at 5,204.30 points, while the Nasdaq Composite gained 194.54 points, or 1.21%, to 16,248.52. The Dow Jones Industrial Average rose 306.18 points, or 0.79%, to 38,903.16.

The S&P 500 posted a weekly decline after mixed economic data during the week, such as the soft services activity report, the stronger manufacturing report and comments from policymakers.

Money markets are now pricing in around two rate cuts this year, down from three a few weeks ago, according to LSEG.

Tesla bucked the day's broader market trend, with its shares losing ground following a Reuters report that the electric carmaker had canceled its inexpensive car that was expected to drive its growth into a mass-market automaker.

Among the day's gainers, Krispy Kreme, which rose after Piper Sandler analysts upgraded the doughnut chain to "overweight" from "neutral." Shockwave Medical gained after Johnson & Johnson agreed to buy the medical device maker for $12.5 billion.