US stock indices surged on Thursday following strong US labor data.

Government data showed US unemployment claims rose by 9 thousand to 221 thousand in the week ending March 30, hitting nine-week highs.

Bloombergs analysts said the government sector is responsible for most of the layoffs in March, followed by the tech sector, then finance.

Analysts believe the US labor sector remains strong, but supply and demand for labor are balancing out gradually.

The crucial US payrolls report will be released tomorrow, with the US economy expected to add 205 thousand in March, compared to 275 thousand in February.

On trading, Dow Jones rose 0.5%, or 183 points as of 16:21 GMT to 39,310, while SP 500 rose 0.8%, or 41 points to 5252, as NASDAQ rose 1.1%, or 178 points to 16,455.