Wall Street's main indexes ended the session higher, as investors reacted positively to a decline in new claims for unemployment benefits in the United States, indicating that the labor market is not as weak as the report indicated at the end of last week.

The S&P 500 rose 2.3% to 5,319.31 points, its biggest gain since November 2022, while the Dow Jones Industrial Average gained 1.76% to 39,446.49 points and the tech-heavy Nasdaq Composite advanced 2.87% to 16,660.02 points, recovering from the previous day's declines.

New claims for U.S. unemployment benefits, released shortly before markets opened, came in at 233,000, down from 250,000 the previous week and below expectations. The drop was the biggest in a year.

The data reassured investors after weak job creation reported late last week raised fears of a recession in the United States and sparked panic in markets. The Federal Reserve closely monitors employment data to determine the direction of interest rates.

North American earnings season remains in focus. Shares of Warner Bros. Discovery fell 8.95%, partly recouping losses from a session in which it hit a record intraday low after a $9.1 billion valuation cut of its TV assets.

Drugmaker Eli Lilly shares surged 9.48% as it revised upward its annual revenue forecast, which should continue to be driven by sales of its weight-loss drugs.