New York, Jan 5 (IANS): US stocks traded higher after US Federal Reserve Chairman stressed patience in future rate hikes and US Labor Department reported stronger-than-expected job growth on Friday.

The Dow Jones Industrial Average surged 590.07 points, or 2.60 per cent, to 23,276.29. The S&P 500 rose 66.17 points, or 2.70 per cent, to 2514.06, Xinhua news agency reported.

The Nasdaq Composite Index was dramatically up 234.43 points, or 3.63 per cent, to 6,697.94.

Fed chairman Jeremy Powell has instilled calm into the US stock markets as he said the central bank would remain patient in hiking benchmark overnight lending rates.

He stressed Fed's future move will depend on "how the economy evolves".

"As always, there is no preset path for policy," Powell said. "And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves."

All of the 11 primary sectors rallied around midday, with the information technology sector up nearly 4 per cent and the consumer discretionary up over 3.2 per cent, leading the winners.

Rebounds in tech shares grew further around midday, eroding some of the grave tumbles of US stocks previously this week.

On the economic front, upbeat job market data helped recover some momentum for the US economic growth.

Total nonfarm payroll employment increased by 312,000 in December, exceeding market expectations, the Bureau of Labor Statistics under Labor Department reported on Friday.

Job gains occurred in health care, food services and drinking places, construction, manufacturing, and retail trade.

Yet the unemployment rate went up to 3.9 per cent, which was highest level since July, 2018.