• The Dow Jones Industrial Average rose by as much as 260 points on Thursday.
• Investors are still hopeful that a new stimulus bill is in the works, even after Senate Majority Leader Mitch McConnell indicated that Democrats and Republicans are still far apart on a new deal.
• Jobless claims hold above 800,000 for the fifth straight week, reflecting a tepid labor market recovery.

The Dow and broader U.S. stock market traded higher on Thursday, as investors remained cautiously optimistic that lawmakers were progressing towards a new coronavirus stimulus bill.

Dow, S&P 500, Nasdaq Rally

All of Wall Street’s major indexes opened higher on Thursday, mirroring a positive pre-market session for stock futures. The Dow Jones Industrial Average rose by as much as 260 points before paring gains.

Dow blue-chips Microsoft, American Express, and Goldman Sachs were the top performers.

The broad S&P 500 Index  of large-cap stocks gained 0.7%, with ten of 11 primary sectors reporting gains. The S&P 500’s consumer discretionary index led the advance , followed closely by information technology and communication services.

Rising tech stocks pushed the Nasdaq Composite Index  higher. The tech-heavy index rose 1% on Thursday.

Investors remain cautiously optimistic about a new stimulus deal after Treasury Secretary Steven Mnuchin said Republicans are working on a $1.5 trillion relief package  to counter the Democrats’ $2.2 trillion proposal. Watch the video below:

Jobless Claims Hold Steady; Consumer Data Mixed

On the data front, U.S. jobless claims held above 800,000 for a fifth consecutive week, highlighting the fragile nature of the recovery.

The number of Americans filing for first-time unemployment benefits declined by 36,000 to a seasonally adjusted 837,000 for the week ended Sept. 26, the Department of Labor reported Thursday . Continuing claims fell to 11.767 million for the week ended Sept. 19, down from 12.747 million.

On Wednesday, payroll processor ADP reported a net increase of 749,000 private-sector jobs in September, much higher than expected. The Labor Department will release the official September jobs report on Friday. Watch the video below:

In a separate report on Thursday, the Commerce Department reported that U.S. personal sending rose 1% in August, but that personal income fell 2.7%. August incomes were under pressure because of a reduction in government aid for unemployed workers .