NEW YORK (TheStreet) -- After four sessions of losses, stocks rallied back to record levels on Thursday, helped by continued weakness in the U.S. dollar.
The S&P 500 closed just above its previous record, while the Dow Jones Industrial Average hovered within 40 points of its high.
After four days of selling, investors were cheered as the dollar weakened further, Treasury yields stabilized and tech and materials stocks rallied.
The S&P 500 was up 1.1% to 2,120, above a record closing level of 2,117 on April 24. The Nasdaq climbed 1.4%. The Dow added 1%, situating it around 40 points off its record high.
The U.S. dollar fell 0.5% against the euro, 0.2% against the British pound, and 0.4% against the Swiss franc. The greenback hit 11-year highs earlier this year which proved troublesome for many multinationals' top-lines during the first quarter.
U.S. Treasury yields stabilized on Thursday, falling back from five-month highs seen earlier this week. The yield on the 10-year Treasury fell to 2.24%.
"We have dollar weakness today. That continues to hold the key," Peter Cardillo, chief market economist at Rockwell Global Capital, told CNBC. "There is complacency in the bond market and that's helping to ease that fear of yields climbing."