U.S. stocks rose on Thursday, with the S&P hitting 1,400, amid hopes for further stimulus steps from the Federal Reserve and better-than-expected housing data.

The Dow Jones industrial average gained 113.90 points, or 0.87 percent, to 13,204.62. The Standard & Poor's 500 was up 9.29 points, or 0.67 percent, to 1,399.98. The Nasdaq Composite Index rose 20.98 points, or 0.69 percent, to 3,050.61.

The Federal Open Market Committee suggested in a statement on Wednesday that the central bank felt positive about the U.S. economy.

Saying that economic growth will "remain moderate over coming quarters and then to pick up gradually," the Fed raised its outlook of U.S. economic growth to 2.4 percent and 2.9 percent in 2012 from a January forecast of 2.2 percent to 2.7 percent growth.

Meanwhile, Fed Chairman Ben Bernanke said that the Fed will act quickly if the economy weakens, generating hopes for more easing policies.

Thursday's rally also followed a positive report from the National Association of Realtors. The association said on Thursday that its Pending Home Sales Index rose 4.1 percent to 101.4, the highest level since April 2010, after a 0.4 percent gain in February that was revised from a previously estimated 0.5 percent drop.

However, there was some negative news from the jobs market which investors finally shrugged off. The Labor Department said the number of people applying for jobless benefits last week decreased mere 1,000 to a seasonally adjusted 388,000, spurring concerns that hiring was slowing down.

On the earnings front, Energy giant Exxon reported its earnings dropped 11 percent from a year ago, as its biggest first-quarter production decline since 2008 wiped out most of the benefit of record oil prices.

As for other markets, crude prices rose on Thursday because of the Fed statement and positive housing data.

Light, sweet crude for June delivery gained 43 cents, or 0.41 percent, to settle at 104.55 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for June delivery also rose slightly and last traded around 120 dollars a barrel.

Meanwhile, the U.S. dollar gained some steam on Thursday but still traded lower against its major counterparts.

VietNamNet/Xinhuanet