The Labor Department today released data that showed a payroll growth of 275,000 jobs and a small rise in the unemployment rate to 4.4 percent from January's 4.3 percent.
The Dow Jones Industrial Average hit a record high of 9,736.08, surpassing the high of 9,647.96 set earlier this year. The blue chip soared 268.68 points or 2.84 percent today. The technology-heavy Nasdaq Composite Index rocketed 45.38 points, or 1.98 percent, to 2,338.27.
"Clearly this is a big relief rally for the market," said Fred Levin, director of research at Aubrey G. Lanston & Company. "The report takes the Fed out of the picture for March--even for adopting a tightening bias."
Shares of networking chipmaker Level One Communications burst their seams today after the company was acquired yesterday by Intel for $2.2 billion. Level One stock soared 65.9 percent, while Intel climbed 1.1 percent.
Reuters contributed to this report.