Also, new applications for US jobless benefits fell below 400,000 for the first time since the pandemic started, while a service sector index came in at an all-time high in May.
The Dow Jones Industrial Average rose 120.79 points, or 0.35pc, to 34,585.43, the S&P 500 gained 13.23 points, or 0.31pc, at 4,214.11 and the Nasdaq Composite added 61.48 points, or 0.45pc, at 13,797.76.
Yields on longer-dated U.S. Treasuries fell for a fourth straight day, with the benchmark 10-year yield hitting a fresh two-week low of 1.564pc and helping to ease inflation worries.
Among blue-chip stocks, Uniqlo operator Fast Retailing added 2.82 percent to 88,520 yen. SoftBank Group rose 1.71 percent to 8,575 yen. Robot maker Fanuc surged 2.60 percent to 25,215 yen.
"We're going to see volatility definitely over the next couple of months" given uncertainty over the path of growth, Kristen Bitterly, of Citi Private Bank, told Bloomberg TV.