U.S. stocks rally on strong jobs data

U.S. stocks traded more than 1 percent higher in the morning session on Friday, as the newly-released nonfarm report far exceeded market expectations.

At midday, the Dow Jones Industrial Average was up 197.13 points, or 1.10 percent, to 18,093.01. The S&P 500 rose 26.46 points, or 1.26 percent, to 2,124.36. The Nasdaq Composite Index gained 68.94 points, or 1.41 percent, to 4,945.75.

Total nonfarm payroll employment increased by 287,000 in June, versus 175,000 estimated by analysts, and the unemployment rate rose to 4.9 percent, the U.S. Labor Department reported Friday.

Investors said the June nonfarm report mollified concerns of an economic slowdown in the United States, as May's payroll rose only by 38,000 and notched the fewest monthly job gain in almost six years.

"The employment gain in June was hefty, but it follows a very weak May and was not confirmed by strength in the household survey," said Chris Low, chief economist at FTN Financial, in a note.

Traders kept a close eye on the nonfarm jobs report for more implications on the U.S. Federal Reserve's next rate hike in a post-Brexit environment.

Fed policymakers decided in June that it was prudent to wait for more data and the Brexit vote result before raising rates, according to the minutes of the Fed's June policy meeting released earlier this week.

U.S. stocks closed mixed on Thursday, as investors digested a batch of jobs data and awaited a key nonfarm report. Enditem