Investors were unnerved by President Donald Trump's threats of tariffs on an additional US$100 billion in Chinese imports as the USA president hit out at China's "unfair retaliation" to a prior Trump announcement of US$50 billion in tariffs on Chinese goods.
Trump said the market turmoil was short-term "pain", but insisted the outcome would leave the U.S.in a better position.
With the Dow Jones Industrial Average now frequently dipping into correction territory, the minds of many traders and investors are turning to the question of how long before this bull run - the longest in Dow history post-World War II - becomes a full-on bear market.
The Dow Jones industrial average rose 389.17 points, or 1.6 percent, to 24,033.36. Separately, the Nasdaq was up 0.5% at 7,076.55.
Investors might feel a little less anxious about a possible trade war after they've overcome Wednesday morning's panic.
The unemployment rate was unchanged at 4.1 per cent in March.
Fed Chair Powell, meanwhile, signalled that the USA central bank still plans to press ahead with additional interest rate hikes in 2018, a stance that also disappointed investors.
Meanwhile, the trade negotiations between the USA and China will be closely watched, with some cautioning that any indications that talks are faltering or of additional sanctions would put the markets at risk of another pullback.
Presumed Dead After US Marine Helicopter Crash In California
The Marines ultimately ruled that crash was the result of pilot error, leading two of the massive aircraft to collide in the air. The names of the crewmembers will be withheld until 24 hours after their relatives are notified, the Miramar base said.
The May crude contract was down 61 cents to $62.90 per barrel and the May natural gas contract was up four cents to $2.73 per mmBTU.
BONDS: Bond prices dipped.
U.S. Treasury prices are higher following the jobs report, with the benchmark 10-year yield up 3 bps to 2.80%. The lower yields mean banks can't make as much money from lending, and that send bank stocks lower.
After a plunge Monday and a big bounce back Tuesday, followed by a steep loss that turned into a big gain Wednesday, the S&P 500 is now up 0.8 percent this week.
Gold rose $7.60 to $1,336.10 an ounce. Copper fell 2 cents to $3.06 a pound.
The S&P 500 posted two new 52-week highs and seven new lows; the Nasdaq Composite recorded 40 new highs and 64 new lows. The FTSE 100 in Britain lost 0.2 percent.
US stocks closed higher on Thursday, extending their two-day rebound rally.