That is up about 37 points or 1.06%.
Earlier in the day, data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, but remained extraordinarily high.
The tech sector, which has spearheaded much of the market's meteoric rise since the pandemic began, led Thursday's pullback as investors cashed in their highly valued tech stocks. Energy companies were the only laggard as oil prices headed lower. "Nonetheless, not all good news is good for markets, with some fearing how improved economic data could restrict the size of any future stimulus packages".
Overseas, European markets also marked a dismal day as weakness in tech names spread. "The Dow Jones Industrial just closed above 29,000!"
The S&P 500 fell 125.78 points, or 3.5%, to 3,455.06.
Wall Street had reached fresh highs this week on what Connor Campbell, financial analyst at Spreadex, called "a combination of relatively unfounded vaccine and stimulus speculation".
The S&P 500 opened lower by 16.10 points, or 0.45 percent, at 3,564.74 and the Nasdaq Composite dropped 194.55 points, or 1.61 percent, to 11,861.90 at the opening bell.
Australian shares are set to tumble after Wall Street experienced its steepest one-day fall in three months, as investors dumped high-flying technology stocks.
Declining issues outnumbered advancers for a 3.25-to-1 ratio on the NYSE and for a 3.76-to-1 ratio on the Nasdaq.
Meanwhile, Initial Claims were fewer than expected and continuing claims fell last week (albeit with methodology changes), providing evidence of an ongoing improvement in the United States labour market. Eastern time, on track for its biggest drop since June, and the tech-heavy Nasdaq fell 4.8%. The Dow Jones Industrial Average gained 1.6%.
Technically, it is impossible for an index to rally - i.e. recover from a setback - when it is at an all-time high, but we get what Cutkovic means.
Chicago Federal Reserve President Charles Evans said Thursday that Congress needs to deliver more fiscal aid and indicated U.S. monetary policy would be eased further and interest rates kept at ultra-low levels for years to help the economy recover.
Investors were also taking into account the latest economic figures.
"It is an aggressive goal but reiterates that the race to find an effective vaccine is making progress", he concluded.
Janet Walker, senior portfolio manager at Abbot Downing in San Francisco, expects Friday's government payroll numbers to also reflect a stalling from July to August.
Investors will be paying close attention Friday when the Labor Department releases its August job report.