Wall Street surges over 1.5% on upbeat forecasts from retailers, Fed relief

Macy's, Dollar General climb after forecast raise; weekly jobless claims fall, Q1 economic contraction confirmed

US stock indexes climbed in a broad-based rally on Thursday after upbeat annual forecasts from several retailers, while data confirmed the U.S. economy contracted in the first quarter, easing concerns about aggressive interest rate hikes.

All of the 11 major S&P sectors advanced, with consumer discretionary up 4.1%, followed by a 1.9% rise in the financials sector.

The small-cap Russell 200 index added 2.1%.

Macy's Inc surged 16.2% after the department store raised its annual profit forecast, as party-wear demand rebounds.

Dollar General Corp and Dollar Tree gained 11.7% and 18.4% respectively, after lifting their annual sales forecasts, as more Americans turn to discount