In opening trade, the Dow Jones Industrial Average advanced 102.92 points (0.79 per cent) to 13,112.92 and the Nasdaq composite climbed 14.90 points (0.60 per cent) to 2,495.61.

The broad-market Standard & Poor's 500 index increased 9.77 points (0.69 per cent) to 1,419.11.

The market extended its gains after a rally that pushed indexes above key support levels including 13,000 for the Dow industrials and 1,400 for the S&P.

Helping sentiment was a Labour Department report showing the US labor market held up better than expected in April despite fears of an economic slump, with 20,000 jobs cut in the month against expectations of a loss of 75,000.

'The report suggests that the US labor market didn't decelerate in April, with some investors now inclined to believe the economic downturn may not be as hard-felt as previously thought,' said Ms Andrea Kramer at Schaeffer's Investment Research. -- AFP