Stocks surged on Thursday as investor confidence grew following positive consumer and labor data that eased recession fears.

The Dow Jones rose 554 points (1.39%) to 40,563.06, the S&P 500 gained 1.61% to 5,543.22, and the Nasdaq climbed 2.34% to 17,594.50.

Strong retail sales and a drop in jobless claims boosted the market, which has rebounded from earlier August losses, CNBC has reported.

The S&P 500 is now just 2% below its record high. Positive earnings reports from Walmart and Cisco, along with cooling inflation, further supported the market rally.

Written by B.C. Begley