On Thursday, US stocks were able to regain some losses after US President Joe Biden said the corporate tax rate could be below 28%.

The S&P 500, for example, rose again from session lows after Biden offered Republicans a 15% minimum tax on US corporations as a way to fund a bipartisan infrastructure package.

Earlier, the benchmark index was lower after a series of strong economic data raised concerns that the Federal Reserve may end its support earlier than expected. The preliminary nonfarm payrolls report showed that U.S. jobs rose the most in the current year, while additional data on the economic health of the services sector rose to its highest level on record, boosting the dollar's strength, which showed growth all day long.

With US stocks locked in a tight range throughout May, investors are awaiting any sign that the Fed may start cutting back on asset purchases.

St. Louis Fed President James Bullard said on Thursday that the US labor market could be more tense than current unemployment rates suggest. All eyes will soon be on Friday's employment report after some data on Thursday indicated growth and US jobless claims fell below 400,000 for the first time during last week's pandemic.

Managing Director of Investment Strategy at E-Trade Financial Mike Loewengart said: "With all systems seemingly working on the job front, the economy is showing some very real signs that this is not just a comeback – a mode of expansion could be on the horizon. So what does that translate to? Likely more pressure on the Fed to make a move – perhaps sooner than many thought from the outset."

Weakness in US stocks followed a plunge in Europe and Asia amid rising geopolitical tensions. The US intends to amend the ban on investing in companies associated with the Chinese military.

Dennis DeBusschere, head of portfolio strategy at Evercore ISI, wrote in a note: "The summer of uncertainty is on full display.10-year yields remain anchored and there is pressure on the USD, but leading indicators are strong, credit conditions are easy and market volatility remains low. That backdrop favors risk assets."