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STORY: U.S. stocks jumped on Thursday after data showed unemployment claims fell more than expected last week, soothing worries the labor market was weakening too quickly.

The Dow gained one-and-three-quarters percent, the S&P 500 rose 2.3% and the Nasdaq soared nearly 2.9%.

Thursday's weekly jobless claims report was better than analysts had expected - boosting sentiment after monthly hiring data just days ago panicked markets and sparked a widespread selloff.

Liz Miller is president of Summit Place Financial Advisors.

"Remember, our employment data is always backward looking and we're all reacting, trying to look forward. You know, that's difficult. But the unemployment claims come out a lot more often, and so they feel like they give us a better pulse of the moment. Eight thousand less people filed for unemployment than the estimate was, and that was strong enough to improve the market."

All the major S&P 500 sectors rose, led by gains in technology.

Among individual movers, shares of Eli Lilly jumped 9.5% after the drugmaker raised its annual profit forecast, and said sales of its popular weight-loss drug Zepbound topped $1 billion for the first time in a quarter.

Shares of Under Armor surged more than 19% after the sports apparel maker posted a surprise first-quarter profit, benefiting from its efforts to cut inventory and promotions.

And News Corp. shares, up more than 2.5% at the close, climbed further after hours after the company beat estimates for fourth-quarter revenue, driven in part by strength in its Dow Jones unit, which includes publications such as The Wall Street Journal and Barron's.