NEW YORK, New York - Recession fears faded on Wall Street Thursday as annualized 4th quarter GDP (gross domestic product) came in at 2.9 percent, ahead of expectations.

"For almost a year, the Federal Reserve has been trying to achieve a soft landing by raising short-term interest rates just enough to bring down inflation without causing a recession," Richard Flynn, managing director at Charles Schwab told Reuters news agency Thursday.

"It's clear the economy remains relatively strong in the face of the Fed's efforts, suggesting they're succeeding."

At the close of trading Thursday, the Nasdaq Composite was ahead 199.06 points or 1.76 percent at 11,512.41.

The Standard and Poor's 500 rose 44.21 points or 1.10 percent to 4,060.43.

The Dow Jones industrials jumped 20.5.57 points or 0.61 percent to 33,949.41.

On overseas equity markets, the Paris-based CAC 40 climbed 0.74 percent. The German Dax rose 0.34 percent. In London, the FTSE 100 gained 0.21 percent.

Tokyo's Nikkei 225 dipped 32.26 points or 0.12 percent to 27,362.75.

The Hang Seng in Hong Kong extended its recent rally, surging 522.13 points or 2.37 percent to 22,566.78.

China's Shanghai Composite remained on the sides for the continuing Lunar New Year celebrations.

In Singapore, the Straits Times Index added 24.42 points or 0.73 percent to 3,377.19.

Indonesia's Jakarta Composite advanced 34.89 points or 0.51 percent to 6,864.82.

In New Zealand, the S&P/NZX 50 rose 28.95 points or 0.24 percent to 12,023.46.

South Korea's Kospi Composite rallied 40.08 points or 1.65 percent to 2,468.65.

The Australian stock markets were closed for Australia Day, or as the Indigenous community has dubbed it, Invasion Day.