Stocks rallied to a higher close on Wall Street as new jobless benefits data showed that the labor market remains strong.

The S&P 500 rose 1.8% Thursday and the Nasdaq and Dow also closed higher.

The major indexes are headed for monthly losses to cap off the worst year for stock investors since 2008.

Tesla recovered much of its recent losses.

The Labor Department said the number of people seeking unemployment benefits was only modestly higher last week, a sign that the labor market remains strong.

Treasury yields were mixed. Markets in Europe were higher and markets in Asia slipped.