The US economy added 321,000 jobs in November, the Labor Department said, well above analysts' forecasts of about 225,000 new jobs.
The Dow Jones added 58.69 points to finish at 17,958.79, while the S&P 500 added 3.45 points to 2,075.37.
The tech-heavy Nasdaq index climbed 11.32 points to close at 4,780.76.
Banks and financial institutions topped the list of gainers on the Dow, with JP Morgan Chase rising 2.15%.
Goldman Sachs closed up 1.82%, while American Express added 0.89%.

The city's mayor, Joao Doria, said he did not want to see an "open-air shopping mall for drugs".
He said he wanted to move the addicts on and provide them with medical services and housing.
Critics say his policies are pushing the problem to other parts of the city.
At the end of May, 500 armed police officers were deployed to clear the main streets in the area of Sao Paulo known as "Cracolandia" or "Crackland".
Nearly 40 people were arrested during the operation for drug-trafficking and many of the addicts fled into neighbouring streets.
The biggest concentration went to Princess Isabel square around 300 metres (330 yds) from the main Crackland area.
During the second operation on Sunday police brought in bulldozers to clear the shacks and tents set up by the addicts in the square.
The mayor said: "We wont be turning back. The idea is not to move them elsewhere,  we intend to provide the addicts with support and try to guarantee their survival."
He has promised to restore and renovate the area providing social housing, schools, kindergartens and hospitals using private and public investments.
Although many people agree in Sao Paulo over the need for intensive policing in the area, Mr Doria has divided opinion over his suggestion that the addicts should receive compulsory rehabilitation treatment.
But workers say many addicts are fearful and hostile to them now and that Mr Doria's policies are destroying years of work building relationships with the addicts.
Social workers also point to the need to provide jobs and housing.
The Doria administration ended a programme introduced by the previous left-wing mayor of Sao Paulo, Fernando Haddad, which had offered hotel rooms in Crackland for a small daily sum to drug addicts who worked in jobs like road-sweeping or gardening.
The mayor has instead recently announced an offer of 100 jobs by a fast food chain to homeless people in general, of which there are around 20,000 in Sao Paulo.

Dugdale, 29, spent a year at the National League club, making 20 appearances and scoring two goals.
Liverpool-born Dugdale, whose previous clubs include Morecambe and Tranmere, posted on Twitter that "the distance from home and my young family was too much."
Left-back Cole, 23, was recently transfer-listed having signed from Staines Town in January.
Find all the latest football transfers on our dedicated page.
(Close): Shares on Wall Street closed at fresh highs on Friday in response to positive jobs data.
[NEXT_CONCEPT]
Security forces in Sao Paulo have cleared a central square of crack addicts and homeless people who fled from a similar police operation nearby nearly a month ago.
[NEXT_CONCEPT]
Defenders Adam Dugdale and Chinua Cole have left Eastleigh by mutual consent.