* Tesla falls on report automaker scrapping low-cost car plans

* March nonfarm payrolls stronger than expected

* Indexes up: Dow 0.9%, S&P 500 1.1%, Nasdaq 1.3%

NEW YORK, April 5 (Reuters) -

U.S. stocks climbed on Friday after a strong jobs report reinforced the view that the economy remains healthy even as it suggested the Federal Reserve could delay cutting interest rates.

All of the major S&P 500 sectors were advancing, led by communication services, industrials and technology.

U.S. Labor Department data showed employers hired far more workers in March than expected and kept steadily lifting wages, suggesting the economy ended the first quarter on solid ground.

The data stoked expectations the Fed will likely delay cutting interest rates given that a recession is nowhere in sight, said Tom Plumb, president and portfolio manager at Plumb Funds in Madison, Wisconsin.

"What we are continuing to see is that a robust economy is not necessarily inflationary, and this labor report, even though it's just for one month, reinforces that there's less likelihood of a recession, which is more important than the expectations of the timing of interest rate reductions," Plumb said.

The Dow Jones Industrial Average rose 337.63 points, or 0.87%, to 38,934.61, the S&P 500 gained 56.86 points, or 1.10%, to 5,204.07 and the Nasdaq Composite added 202.05 points, or 1.26%, to 16,251.13.

The S&P 500 was on track for a weekly decline, pressured this week by mixed economic data such as the soft services activity report, the stronger manufacturing report and comments from policymakers.

Money markets are now pricing in around two rate cuts this year, down from three a few weeks ago, according to LSEG.

Tesla bucked the day's broader market trend, with its shares down 3.9% following a Reuters report that the electric carmaker had canceled its inexpensive car that was expected to drive its growth into a mass-market automaker.

Among the day's gainers, Krispy Kreme, which rose 6% after Piper Sandler analysts upgraded the doughnut chain to "overweight" from "neutral". Shockwave Medical gained 2% after Johnson & Johnson agreed to buy the medical device maker for $12.5 billion.

Advancing issues outnumbered declining ones on the NYSE by a 1.49-to-1 ratio; on Nasdaq, a 1.18-to-1 ratio favored advancers.

The S&P 500 posted 20 new 52-week highs and 5 new lows; the Nasdaq Composite recorded 60 new highs and 118 new lows.

(Reporting by Reporting by Chibuike Oguh in New York, additional reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by David Gregorio)