Stock futures moved higher on Friday morning after the latest reading on the U.S. labor market showed 287,000 jobs were added to the U.S. economy in June. 

S&P 500 futures were up 0.74%, Dow Jones Industrial Average futures added 0.6%, and Nasdaq futures climbed 0.54%. 

The U.S. nonfarm payrolls report showed that 287,000 jobs were added in June, well above economists' expectations of 175,000. The 35,000 workers returning from a May strike at Verizon boosted the headline figure. 

The U.S. unemployment rate rose to 4.9% from 4.7%, while the labor force participation rate increased to 62.7%. Average hourly wages rose 0.1% to $25.61. 

The dismal jobs reading from May was reduced even further to just 11,000 from 38,000. April's reading was increased to 144,000 from 123,000. 

The report is being closely scrutinized through the lens of what it could mean for the Federal Reserve. Chances of a rate hike in the near term were greatly diminished after the United Kingdom's vote to exit the European Union, though these signs of improvement in the U.S. labor market could put a late-2016 hike back on the table. 

"The FOMC is definitely breathing a sigh of relief as this report indicates the May reading was a 'one off' and confirms that the U.S. labor market is still relatively healthy," said Chris Gaffney, president of EverBank World Markets. "This surprisingly strong job report will probably put a 2016 rate increase back into the conversation."

Banking stocks spiked on the increased chances of a rate hike. Bank of America (BAC - Get Report) , Wells Fargo (WFC - Get Report) , Citigroup (C - Get Report)  and JPMorgan (JPM - Get Report) each moved higher after the release. 

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Juno Therapeutics (JUNO)  slumped after the Food and Drug Administration put one of its cancer drugs on a mid-stage clinical hold after the death of two patients undergoing treatment. The biotech company has requested the trial continue without the use of fludarabine, the suspected factor in the deaths. 

Gap (GPS - Get Report) rose 4% in premarket trading after reporting a 2% increase in comparable sales in June to a total $1.57 billion. Same-store sales declined at its namesake brand and Banana Republic, though increased at Old Navy stores.

Barracuda Networks (CUDA) rose in premarket trading after besting analysts' estimates on its top- and bottom-lines. The tech company earned 20 cents a share in its first quarter, 9 cents above forecasts, while revenue jumped more than 11% to $86.65 million. 

PriceSmart (PSMT - Get Report) tumbled after reporting a disappointing third quarter. The discount chain earned an adjusted 55 cents a share, 15 cents lower than expectations. Revenue of $704.26 million missed estimates by nearly $2 million. 

Polycom (PLCM) jumped after private-equity firm Siris Capital agreed to buy the enterprise networking company in a deal worth $2 billion. The acquisition ends Polycom's previous merger with Mitel Networks (MITL) .