U.S. stocks climbed on optimism that officials will come to terms on fresh economic stimulus. Gold extended gains amid speculation interest rates will stay low for longer.

Initial claims for state unemployment benefits fell 249,000 to a seasonally adjusted 1.186 million for the week ended August 1, the Labour Department said, the lowest reading since mid-March.

The four principal negotiators in Washington appeared to be near agreement on some topics, but still trillions of dollars apart on major issues, including the size of a federal benefit for tens of millions of unemployed workers.

The Dow Jones Industrial Average rose 185.46 points, or 0.68%, to 27,386.98, and the Nasdaq Composite added 141.65 points, or 1.27%, to 11,267.08.

Equity gains in the past week have pushed a gauge of global stocks to its highest level this year, but any hint that negotiators wont be able to resolve differences over a new U.S. virus relief package has sparked jitters. The White House and congressional Democrats are up against a self-imposed Friday deadline to strike a deal as data Thursday showed almost 1.2 million unemployment claims.

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