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Tesla falls on report automaker scrapping low-cost car

plans

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March nonfarm payrolls stronger than expected

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Indexes up: Dow 0.9%, S&P 500 1.1%, Nasdaq 1.3%

(Updates to 1430 ET)

By Chibuike Oguh

NEW YORK, April 5 (Reuters) -

U.S. stocks climbed on Friday after a strong jobs report

reinforced the view that the economy remains healthy even as it

suggested the Federal Reserve could delay cutting interest

rates.

All of the major S&P 500 sectors were advancing, led by

communication services, industrials and

technology.

U.S. Labor Department data showed employers hired far more

workers in March than expected and kept steadily lifting wages,

suggesting the economy ended the first quarter on solid ground.

The data stoked expectations the Fed will likely delay

cutting interest rates given that a recession is nowhere in

sight, said Tom Plumb, president and portfolio manager at Plumb

Funds in Madison, Wisconsin.

"What we are continuing to see is that a robust economy

is not necessarily inflationary, and this labor report, even

though it's just for one month, reinforces that there's less

likelihood of a recession, which is more important than the

expectations of the timing of interest rate reductions," Plumb

said.

The Dow Jones Industrial Average rose 337.63

points, or 0.87%, to 38,934.61, the S&P 500 gained 56.86

points, or 1.10%, to 5,204.07 and the Nasdaq Composite

added 202.05 points, or 1.26%, to 16,251.13.

The S&P 500 was on track for a weekly decline, pressured

this week by mixed economic data such as the soft services

activity report, the stronger manufacturing report and comments

from policymakers.

Money markets are now pricing in around two rate cuts this

year, down from three a few weeks ago, according to LSEG.

Tesla bucked the day's broader market trend, with

its shares down 3.9% following a Reuters report that the

electric carmaker had canceled its inexpensive car that was

expected to drive its growth into a mass-market automaker.

Among the day's gainers, Krispy Kreme, which rose

6% after Piper Sandler analysts upgraded the doughnut chain to

"overweight" from "neutral". Shockwave Medical ( SWAV ) gained

2% after Johnson & Johnson ( JNJ ) agreed to buy the medical

device maker for $12.5 billion.

Advancing issues outnumbered declining ones on the NYSE by a

1.49-to-1 ratio; on Nasdaq, a 1.18-to-1 ratio favored advancers.

The S&P 500 posted 20 new 52-week highs and 5 new lows;

the Nasdaq Composite recorded 60 new highs and 118 new lows.