NEW YORK — The Dow Jones Industrial Average climbed 686.23 points, or 1.35%, to close at 51,373.30 on Thursday, marking its strongest daily gain in weeks as investors welcomed robust employment figures and signs that inflation continues to moderate toward the Federal Reserve's target.

The blue-chip index extended its recent recovery, driven by broad-based buying across sectors. Technology, financial services and industrial stocks led the advance, reflecting optimism about economic resilience and the potential for monetary easing later this year. The S&P 500 and Nasdaq Composite also posted solid gains, with the tech-heavy Nasdaq rising more than 1.2% on continued enthusiasm for artificial intelligence-related companies.

Thursday's rally came after the Labor Department reported stronger-than-expected job growth in May, with nonfarm payrolls increasing by 272,000. The unemployment rate held steady at 4.2%, while wage growth moderated slightly, easing concerns about an overheating labor market. Economists had anticipated a gain of around 185,000 jobs, making the report a positive surprise that signaled the economy remains on solid footing without excessive inflationary pressure.

The data helped alleviate fears of an imminent recession while reinforcing expectations that the Federal Reserve could begin cutting interest rates in the coming months. Traders now price in roughly two quarter-point reductions by year-end, with the first move possibly coming as early as September. Lower borrowing costs would support corporate investment and consumer spending, providing a favorable backdrop for equities.

Major Dow components contributed significantly to the session's advance. Apple, Microsoft and Goldman Sachs were among the top performers, each........

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