The Dow is up 459.39 points, or 1.9 per cent.
Gains in Apple, Amazon and chipmakers Broadcom and Micron Technology drove the S&P 500 higher.
The report also showed moderating wage growth, mitigating fears of runaway inflation that could prompt the Federal Reserve to hasten its pace of interest rate hikes.
Traders of U.S. short-term interest-rate futures kept bets the Federal Reserve will stick to three rate hikes this year.
US stocks seesawed as investors digested the latest shakeup at the White House and on the heels of a tame inflation reading.
However, the S&P and the Dow have almost reclaimed those losses.
The Dow Jones industrial average skidded 157.13 points, or 0.6 per cent, to 25,178.61.More news: Final Fantasy VII Remake team is hiring "core members"
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"Even as the markets are looking fairly positive in general, especially south of the border, it's really a very narrowly-focused group of technology stocks that are carrying nearly all of the gains".
Stocks turned in a mixed performance, with the Dow dragged lower by losses in Boeing and Caterpillar, the S&P 500 ending a tick below its unchanged mark and the Nasdaq climbing to a new all-time high for the second straight session.
Investors will pore over the next round of data on consumer prices and retail sales due this week for signs of rising price pressure.
Persistent concern of a global trade war, after President Donald Trump implemented 25% tariff on steel imports and 10% on aluminium imports to the USA, also continued to weigh on investor sentiment.
Oclaro (OCLR.O) jumped 25 percent and was the most traded stock premarket after laser and optical fiber specialist Lumentum Holdings (LITE.O) said it would buy the optical components producer for $1.7 billion.
Advancing issues outnumbered decliners on the NYSE by 1,592 to 877.