Dollar Dives as U.S. Stocks Surge on Easing Inflation Concerns

U.S. stock markets closed higher on Thursday as bond yields eased and the dollar dived, following easing inflation concerns and stronger-than-expected services sector data.

The Standard & Poor's 500 climbed 81 points to finish at 7,747.61, a gain of 1.06 percent, while the Dow Jones Industrial Average soared 624 points to close at 53,685.93, up 1.18 percent.

The tech-heavy NASDAQ Composite outpaced its peers, rallying 366 points to end at 26,584.06, a robust advance of 1.40 percent.

Market analysts attributed the widespread gains to easing inflation concerns and renewed optimism that the Federal Reserve may be nearing the end of its tightening cycle.