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NEW YORK -- Stocks rose again Thursday after more companies reported better profits than expected, while yields climbed after a Federal Reserve official cautioned the end to its interest-rate hikes may not arrive as soon as Wall Street hoped.
The S&P 500 gained 0.9%, adding to its rally from the day before as hopes rise further that the U.S. government can avoid a disastrous default on its debt. The Dow Jones Industrial Average added 115 points, or 0.3%, while the Nasdaq composite climbed 1.5%.
Video game maker Take- Two Interactive shot to the biggest gain in the S&P 500 after it forecast a huge jump in revenue for the fiscal year following this one. That stoked speculation that Grand Theft Auto VI is on the way, and its stock jumped 11.7%.
Bath & Body Works was close behind with a gain of 10.7%. It reported stronger revenue and earnings for the latest quarter than analysts expected.
Also helping to support Wall Street was another retailer, Walmart, which rose 1.3% after reporting stronger results for the latest quarter than expected. It raised its financial forecast for the full year, though it said it's seeing shoppers remain cautious about spending.
Much scrutiny has been on the retail industry because strong spending by U.S. households has been one of the main pillars keeping the slowing economy out of a recession.
Stocks have remained remarkably resilient since early April despite a long list of worries. A major reason for that is hope the Fed would take it easier on its hikes to rates, which have slowed inflation at the expense of risking a recession and knocking down prices across financial markets.