US stock indices power up after payrolls report

US stock indices gained ground on Friday following the release of somewhat weak payrolls data for April, which boosted the odds of a Fed interest rate cut in the summer.

The US government reported the addition of 175 thousand new jobs to the economy in April, down from 315 thousand in March, while analysts expected the addition of 240 thousand jobs. 

US unemployment rose to 3.9% last month from 3.8%, however it remains below 4% for the 27th month in a row.

On trading, Dow Jones rose 1.2% as of 15:07 GMT, or 439 points to 38,665, while S&P 500 rose 1%, or 51 points to 5115, as NASDAQ added 1.7%, or 277 points to 16,111.