NEW YORK (CNNMoney) -- U.S. stocks rose Thursday, as hopes for more stimulus from the Federal Reserve and upbeat housing data overshadowed concerns about the job market and mixed corporate earnings.
The Dow Jones industrial average (INDU) rose 114 points, or 0.9%, to end at 13,204. The S&P 500 (SPX) gained 9 points, or 0.7%, to just under 1,400. The Nasdaq (COMP) added 21 points, or 0.7%, to 3,051.
Thursday's gains came one day after Fed chairman Ben Bernanke said central bank policy is "approximately in the right place at this point." But he added that the Fed is "prepared to take further action" if the economy deteriorates.
Some investors took the comments as a sign the Fed is willing to extend its asset purchasing program, known as quantitative easing, said Joseph Saluzzi, co-head of equity trading at Themis Trading.
"There's definitely some after-effects of Bernanke," Saluzzi said. "The stimulus addicts are still at it, and Bernanke certainly didn't shut the door."
Meanwhile, investors digested reports showing that initial jobless claims remain elevated while pending home sales have increased.
In addition, stocks have been supported by better-than-expected corporate earnings.
As of Wednesday, nearly half of the companies in the S&P 500 have reported first-quarter results, and 76% of them have beat expectations, according to Capital IQ.
"I have been encouraged by corporate earnings overall," said Conroy. "There have been two clear leaders in financials and technology."
The dollar lost strength against the euro, the Japanese yen and the British pound.
Oil for June delivery rose 43 cents to settle at $104.55 a barrel.
Gold futures for June delivery rose $18.20 to $1,660.50 an ounce.
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