The S&P 500 was trading in the green on Thursday after some solid housing data eased some concerns about the U.S. economy sliding into recession.

The broad market index rose 0.5%, and the Nasdaq Composite gained 0.7%. The tech-heavy index's gains were supported by gains in large-cap tech stocks such as Meta Platforms and Amazon, which rose about 4% and more than 1%, respectively. The Dow Jones Industrial Average was trading 217 points higher, or 0.5%.

New economic data released Thursday suggested that economic concerns may have been overblown. Data from the National Association of Realtors showed that existing home sales in February rose 4.2% from January, while industry analysts had expected a 3% decline. Additionally, jobless claims rose only slightly last week while layoffs remained low.

The data came after Fed Chairman Jerome Powell said the economy is "overall strong" and that he believes policy is "well positioned" to respond to signs of weakness in economic data. He also suggested the potential impact of tariffs on inflation is likely to be temporary or transitory.

On Wednesday, the Fed maintained its forecast for two rate cuts this year and kept the federal funds rate in a range of 4.25% to 4.5%. However, the central bank also raised its inflation outlook and lowered its economic growth projections. Most traders, however, expect the Fed to hold off on any action before officials see the impact of tariffs.

Stocks bounced back on Wednesday after the Fed's decision, regaining some ground after last month's sharp declines. The Dow rose 0.9% and the S&P 500 gained more than 1%. The Nasdaq gained 1.4%, but is still down 11% in the past month, a steep correction.

The S&P 500, which briefly slipped into correction territory last week, is now down more than 7% from its record high. Over the past month, the index has fallen nearly 7%.

As the White House's tariff policy rattled markets earlier this month, President Donald Trump said the economy could go through a "transition period." Tariff exemptions on certain imports from Canada and Mexico expire on April 2. (Newsmaker23)

Source: CNBC