"This will eventually matter greatly to US markets".
The S&P 500 is up 179.97 points, or 6.7 per cent.
The Dow is up 790.01 points, or 3.2 percent.
The latest data pointed to strength in the labor market, underscoring the health of the US economy despite ongoing trade tensions.
The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting that a strong economy was helping the labor market counter ongoing trade tensions. It's a risk-on trade.
"We are in the zone of full employment and inflationary trends are continuing to firm, and that is supportive of the federal reserve removing monetary policy accommodation throughout the balance of this year".
At 2:47 p.m. (1847 GMT), the Dow Jones Industrial Average was down 270.25 points, or 1.06 percent, to 25,238.98, the S&P 500 had lost 25.21 points, or 0.88 percent, to 2,828.37 and the Nasdaq Composite had dropped 65.17 points, or 0.83 percent, to 7,826.61.
Samsung Galaxy Note 9 USA carrier availability
Since then, Samsung has subjected its phones to multiple inspections, including X-rays and stress tests at extreme temperatures. It will let users remotely control the Note 9's camera and switch between slides in a presentation, the company said .
Ten of the 11 major S&P sectors were lower, with bank stocks taking the biggest hit. The materials sector led the gains as aluminum prices rose.
Meanwhile, concerns over escalating trade conflict between the US and China weighed on the trade-sensitive S&P 500 Industrials Index, which ended up losing 0.57% on the day.
Sinclair dropped 2.9 percent after Tribune Media dropped its $3.9 billion deal to be acquired by Sinclair and filed a lawsuit against the company for breach of contract. Tribune shares rose 2.9 percent.
Brent crude futures fell 8 cents to $72.20 a barrel and USA crude futures were down 2 cents at $66.92 a barrel.
Declining issues outnumbered advancing ones on the NYSE by a 2.10-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favoured decliners.
On the TSX 78 issues advanced and 162 declined as a 0.5-to-1 ratio favoured decliners.