The market had been heading for a drop before the jobs numbers came out, so investors clearly were relieved to see a bigger gain in jobs added and larger decline in the unemployment rate than economists had expected.
"This suggests the healing continues and assuages fears that economic momentum is stalling," said Quincy Krosby, chief market strategist for Prudential Financial.
All three indexes are higher for the week. The Dow rose nearly 4% in the past five days while the S&P 500 and Nasdaq each gained more than 2%.
One market analyst said the latest round of tough talk from Trump on China is "noise" that is probably already priced into stocks. And Trump likely realizes that going too far could hurt the top techs that have helped keep the broader market afloat. Think FAANG and Microsoft.
"A lot of the optimism in markets has been based on an idea that there is a recovery underway," said Seema Shah, chief strategist with Principal Global Investors. "The market could face a major struggle if big tech stocks fell under pressure."
Investors are also paying close attention to negotiations in Congress regarding another potential round of new stimulus for struggling Americans after expanded unemployment benefits ran out at the end of last month.
Democrats are pushing for a bigger package than many Republicans want -- and the stronger-than-expected jobs figures could give Republicans more reason to resist calls for additional stimulus.
But the unemployment rate remains substantially higher than where it was before millions of Americans lost their jobs as a result of shutdowns tied to the coronavirus outbreak.
"This jobs number won't motivate Congress to do something but I hope lawmakers don't use this as an excuse. You'd like to see another round of stimulus to help consumers recover," said Yousef Abbasi, global market strategist at StoneX.
What's more, the Federal Reserve seems intent on keeping interest rates near zero for the foreseeable future to try to foster more economic activity.
"The Fed will want to keep rates low for even longer," said Krosby, the Prudential strategist. "The jobs report doesn't change anything for the Fed and the bond market recognizes that."
Investors are also continuing to keep an eye on earnings -- and not just the economy.