The Dow Jones industrial average (INDU) rose 8 points, or 0.1%, to end at 12,403; the S&P 500 (SPX) added 5 points, or 0.4%, to 1,326; and the tech-heavy Nasdaq Composite (COMP) gained 22 points, or 0.8%, to close at 2,783. The Dow had been down more than 70 points earlier in the session.
Stocks have been struggling this month, as optimism over upbeat corporate earnings has been tempered by signs the economy could be entering a slowdown this summer.
Evidence of a weaker economy was prevalent in two economic reports released Thursday morning.
The number of Americans filing for first-time unemployment benefit claims remained above 400,000 for the seventh week in a row. Additionally, the government's revised reading on first-quarter growth domestic product remained at 1.8%. Economists expected GDP to bump up to 2%.
"The data doesn't bode well for the summer," said Stephen Carl, head trader with Williams Capital.
May has been a volatile month for stocks overall, with the Dow and S&P 500 both falling about 3.2% since the beginning of the month.
Analysts at Standard & Poors are predicting the stock market could be in for a 10% correction over the next month.
"The global equity markets continue to wrestle with the paradox of rising earnings estimates and declining global economic growth indicators," said Sam Stovall, chief investment strategist with Standard & Poor's Equity Research, in a note to investors Wednesday.
The dollar fell against the euro, the Japanese yen and the British pound.
Oil for July delivery dropped $1.09, or 1.1%, to $100.23 a barrel.
Gold futures for June delivery slid $4.10 to $1,523.20 an ounce. Silver for June delivery fell 0.8% to $37.33 an ounce.
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