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Stocks soared on Thursday, with the Dow and S&P 500 crossing above their record closing levels, after Federal Reserve Chairman Ben Bernanke emphasized the central bank intends to keep its stimulus measures for the foreseeable future.
(Read More: Will Investors Finally Buy Bernanke's Explanation?)
The Dow Jones Industrial Average rallied above its all-time closing high of 15,409.39 and was over 130 points higher in afternoon trading. Most Dow components traded in positive territory, boosted by Caterpillar and Disney.
The blue-chip index's point gain for 2013 is already greater than any year on record.
The S&P 500 was higher for a sixth-consecutive session, flirting with its record closing level of 1,669.16. The S&P 500 is now on pace for its biggest weekly gain since January.
The Nasdaq also jumped, while the Russell 2000 index hit a new all-time high for the fourth-straight session.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, slid near 14.
All key S&P sectors were in positive territory, lifted by materials and industrials.
Bernanke said monetary policy would remain accommodative for the foreseeable future, even if the unemployment rate hit the Fed's target of 6.5 percent. Speaking at a conference after the market close Wednesday, Bernanke's remarks came after the release of minutes from the Fed's latest policy meeting, which showed that policymakers wanted further reassurances about the strength of the jobs market before pulling back on stimulus measures.
(Read More: What Did Ben Say? Playing the Fed Word Game)
The dollar dropped broadly against a basket of currencies, with its index falling to $82.418, its lowest since June 25 and down around 2.8 percent from the three-year high of $84.753. Meanwhile, Treasury prices trimmed their gains after rallying sharply overnight as traders turned their focus to the $13 billion auction of 30-year bonds.
On the economic front, weekly jobless claims rose by 16,000 last week to a seasonally adjusted 360,000, according to the Labor Department, above expectations for a reading of 340,000. The four-week moving average of new claims increased by a more modest 6,000 to 351,750.
Meanwhile, import and export prices declined for the fourth-straight month in June, according to the Labor Department.
Gasoline prices are forecast to jump between 10 and 20 cents per gallon within the next few days, driven by rising oil prices and peak driving season. Oil prices have risen in recent weeks on geopolitical concerns, along with declining inventories.
In Asia, the Shanghai Composite rose above the key 2,000 level for a second straight session on hopes that Wednesday's dismal trade data will lead the Chinese central bank to ease monetary policy in an effort to boost growth.
(Poll: Will China Experience a 'Hard Landing' in 2013?)
Meanwhile, the yen strengthened further against the dollar on Thursday after the Bank of Japan held its monetary policy steady, but upgraded the country's economic outlook.
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