(Updates to market close)
By Stephen Culp
NEW YORK, April 8 (Reuters) - A tech rally pushed the S&P 500 to an all-time closing high on Thursday and Treasury yields extended their pull-back from recent peaks as market participants digested the U.S. Federal Reserve's vow to stay the course with its dovish monetary policy.
The Nasdaq led the way, advancing more than 1%, but the blue-chip Dow's gain was more modest. .N
"It's a little bit of a Fed-driven day going back to their comments yesterday of rates remaining low for an extended period of time - we're seeing interest rate-sensitive stocks like technology benefiting from that," said Jeff Carbone, managing partner at Cornerstone Wealth in Huntersville, North Carolina.
"There are really no major drivers right now" until earnings season starts next week, he added.
European stocks closed at record highs on growing optimism about a global stimulus-driven economic revival and reassurances from the Fed. has not been able to get out of its own way for a long time," said Jamie Cox, managing partner for Harris Financial Group in Richmond, Virginia. "It's nice to see it pick up a bit.
"Now is the time for value stocks, and European indices are chock full of them," Cox added.
Minutes of the Fed's last policy meeting, published on Wednesday, showed board members felt the economy was still short of target and reiterated their accommodative monetary stance. Fed have said they are watching inflation and took the air out of the situation quite a bit," Cox said. "The market got what it wanted out of the Fed."
Fed Chairman Jerome Powell expanded on that topic on Thursday at an International Monetary Fund event, saying that while the economic reopening could result in a momentary surge in prices, he expects it to be temporary and it will not constitute inflation. report from the U.S. Labor Department showed jobless claims unexpectedly increased last week, a blemish among a string of otherwise upbeat recent economic data. Dow Jones Industrial Average .DJI rose 57.31 points, or 0.17%, to 33,503.57, the S&P 500 .SPX gained 17.22 points, or 0.42%, to 4,097.17 and the Nasdaq Composite .IXIC added 140.47 points, or 1.03%, to 13,829.31.
The pan-European STOXX 600 index .STOXX rose 0.58% and MSCI's gauge of stocks around the globe .MIWD00000PUS gained 0.48%.
Emerging market stocks rose 0.34%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.55% higher, while Japan's Nikkei .N225 lost 0.07%.
U.S. Treasury yields fell on Thursday, pressured by Powell's dovish comments and weaker-than-expected initial weekly jobless claims. 10-year notes US10YT=RR last rose 9/32 in price to yield 1.6244%, from 1.654% late on Wednesday.
The 30-year bond US30YT=RR last rose 13/32 in price to yield 2.3168%, from 2.336% late on Wednesday.
The dollar dropped to a two-week low against a basket of currencies, tracking Treasury yields following the surprise rise in U.S. unemployment applications. dollar index .DXY fell 0.42%, with the euro EUR= up 0.36% to $1.1913.
The Japanese yen strengthened 0.54% versus the greenback at 109.28 per dollar, while sterling GBP= was last trading at $1.3733, down 0.01% on the day.
Crude oil prices were little changed as Wall Street's rally and the soft dollar offset concerns over a big jump in U.S. gasoline stocks. crude CLcv1 fell 0.28% to settle at $59.60 per barrel, while Brent LCOcv1 settled at $63.20 per barrel, up 0.06% on the day.
Gold prices jumped, scaling a one-month peak as the Fed's assurances that it will maintain its accommodative policy weighed on Treasury yields and the greenback. gold XAU= added 1.1% to $1,756.36 an ounce. U.S. gold futures GCv1 settled up about 1% at $1,758.2.
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