The Nasdaq composite gapped above its 50-day moving average and surged 1.9%. Top gainers in the Nasdaq 100 included Constellation Energy (CEG), which gave an early buy signal ahead of next week's earnings report. The stock is just below a conventional entry of 198.83.

The S&P 500 gapped up close to its 50-day line, climbing 1.1%. Homebuilders PulteGroup (PHM) and D.R. Horton (DHI) outperformed in the S&P 500 with gains of around 3% each. Falling interest rates fueled the buying.

Meanwhile, the Dow Jones index was up 1.1% on the stock market today, surging more than 400 points. Dow component Apple jumped more than 6% after the company reported earnings and announced a $110 billion share buyback, the largest ever for a publicly traded company. Apple also raised its dividend slightly to 25 cents a share.

Amgen Leads Dow; Jobs Report Shows Softness

But Amgen (AMGN) was the biggest gainer among blue chips, surging 13% after the company said it was "very encouraged" with interim results from its obesity drug MariTide. The news wasn't good for weight-loss drug giants Eli Lilly (LLY) and Novo Nordisk (NVO), which fell nearly 3% and 1%, respectively.

Microsoft (MSFT) was another solid gainer on the Dow Jones index Friday, up more than 2%. The stock is consolidating below its 50-day line as it forms a new base.

In economic news, the April jobs report showed nonfarm payrolls up 175,000, well below the Econoday estimate for 243,000. The Federal Reserve has been looking for some softness in the labor market. It finally got it after several months in a row of strong job growth.

Advancers beat decliners on the Nasdaq by about 2-to-1. Winners beat losers on the New York Stock Exchange by nearly 3-to-1.

The 10-year Treasury yield fell more than 6 basis points to around 4.51% after hitting an intraday low of 4.45%.