Stocks shot higher yesterday as a robust employment report helped calm concerns about company profits rather than set off another wave of inflation jitters.

The Dow Jones industrial average rose 167 points to 9,037 the biggest gain in four months and the first close above 9,000 in two weeks.

Most broad-market indicators also posted big gains, although the Nasdaq composite index rose only modestly as technology shares continued to struggle.

The rally came after the US Labour Department reported that the nation's unemployment rate held at a 28-year low of 4.3 per cent in May. Many analysts had thought the April rate was a fluke, but the May figure provided another sign of possible wage rises and then ensuing price rises.