NEW YORK (TheStreet) -- Stocks solidified earlier gains on Thursday as consumer prices remained weak, potentially giving the Federal Reserve pause in its rate hike plans.
The S&P 500 was up 0.75%, the Dow Jones Industrial Average added 0.88%, and the Nasdaq gained 1.1%.
Fitbit (FIT) surged in its market debut on the New York Stock Exchange on Thursday. The wearable tech company rocketed 50.7% higher to $30.16, well above its initial pricing of $20 a share for its float of 36.6 million shares.
Conditions in the Philadelphia Fed district markedly improved. The Philadelphia Fed business outlook survey climbed to 15.2 in June from 6.7 in May, far higher than an expected reading of 8.
Consumer prices in the U.S. continued to show weakness, potentially giving pause to the Fed's plans for interest rate hikes. Prices in May rose 0.4%, attributable to a 10.4% bounce in gasoline prices. The reading came in below estimates for an increase of 0.5%. Core CPI rose 0.1%, below economists' forecasts of a 0.2% increase excluding volatile items such as food and energy.
"Underlying price pressures should remain relatively contained, which will provide the Fed with the necessary justification to be very "gradual" in the pace of policy tightening," said TD Securities' Millan Mulraine.
Weekly jobless claims fell to 267,000 in the week ended June 12, after a 279,000 reading a week earlier. Economists expected the number of people filing unemployment benefits claims to fall to 276,000.
Markets were also boosted by the Fed's decision on Wednesday to leave interest rates unchanged at near-zero crises levels for another month. However, the Fed signaled it is prepared to move later this year, according to a press release. Click here for more.