Wall Street also set its sights on Washington. Federal Reserve Chair Janet Yellen testified in front of Congress for the second straight day. Her prepared remarks from Wednesday ignited a rally in the U.S. stock market.
"We see yesterday's breakout above intraday resistance as a catalyst for a subsequent breakout to new highs, which would yield a short-term measured move projection of about 2507 for the SPX," said Katie Stockton, chief technical strategist at BTIG, in a note.
The S&P jumped 0.85 percent Wednesday and the Dow notched intraday and closing records.
Yellen hinted Wednesday that future interest rate hikes would be more gradual, adding the Fed would start unwinding its $4.5 trillion bond portfolio "relatively soon."
"It is the 'relatively soon' part that begs the question of whether it starts on July 26th when the FOMC next meets or two months later at the September meeting. Either way, we're getting more tightening within the next few months," said Peter Boockvar, chief market analyst at The Lindsey Group, in a note.
In economic news, the U.S. producer price index rose 0.1 percent in June. Economists polled by Reuters expected the index to remain flat. Weekly jobless claims, meanwhile, came in just above expectations at 247,000.
Wall Street also looked ahead to the start of earnings season. JPMorgan Chase, Wells Fargo and Citigroup are set to report Friday morning.
"Earnings season is first and foremost on people's minds right now," said Robert Pavlik, chief investment strategist at Boston Private. "The big banks will direct the market in the short term" as earnings season gets under way.
—CNBC's Terri Cullen and Lauren Thomas contributed to this report.