The S&P 500 reached a fresh record high on Thursday, defying concerns raised by a disappointing retail sales report that cast doubt on a "soft landing" scenario for the US economy. The Dow Jones Industrial Average also experienced a strong surge, rising 0.9% or nearly 350 points, while the Nasdaq Composite saw a more modest increase of 0.3%. The S&P 500 closed the day up almost 0.6%, hitting a record closing high of 5,029.73.

The stock market's resilience comes following a tumultuous start to the week, with stocks plummeting on Tuesday due to concerns over hot inflation data. However, comments from Federal Reserve policymakers downplaying the significance of the data helped calm investor nerves.

Investors are still questioning whether the recent sell-off was a one-time event or the beginning of a broader pullback. Some Wall Street strategists have highlighted signs of resilience in the market even during the downturn.

On Thursday, investor attention turned to the January retail sales report, which indicated a 0.8% decline compared to the previous month. This raised concerns about consumer resilience and the possibility of a "no landing" scenario for the US economy.

Energy and Real Estate sectors were the big winners of the day, with both experiencing more than a 2% increase. The recovery from the Tuesday sell-off has been remarkable, as the S&P 500 has now surpassed its closing level on Monday, just before the release of the concerning inflation data.

In another highlight, elevator giant Otis Worldwide held an investor day, showcasing bullish plans for the future. The company expects a 10% adjusted EPS growth for its medium-term planning horizon, supported by a substantial $8 billion return to shareholders through dividends and buybacks by 2028.

Meanwhile, Restaurant Brands International, parent company of Burger King, also attracted attention with signs of a turnaround in its earnings report earlier this week.

Despite the strong performance of stocks, first quarter economic growth expectations have been lowered. The January retail sales report contributed to this decline, with the Atlanta Fed now projecting a growth rate of 2.9%, down from the previous projection of 3.4%. Wall Street economists, including Goldman Sachs, have also revised their forecasts downward.

While the lowered growth projection may cool concerns about an overheating economy, mortgage rates have risen again, dampening hopes of rate cuts by the Federal Reserve. The stubbornly high borrowing costs pose a challenge to homebuying affordability.

In the tech sector, Nvidia's investments in several AI-related companies thrilled investors, resulting in significant stock gains for Arm Holdings, SoundHound AI, and Recursion Pharmaceuticals.

Tech stocks, however, saw a pause in their rebound as major players like Apple, Amazon, Microsoft, and Nvidia experienced declines.

Despite concerns over competition from OpenAI, Alphabet's shares fell by as much as 3%, affecting the performance of the Nasdaq Composite.

Homebuilder confidence rose for the third consecutive month, bolstered by declining mortgage rates. The National Association of Home Builders reported an increase in sentiment, reflecting the strength of the newly constructed home market.

JPMorgan and Disney hit 52-week highs, supporting the positive performance of the Dow Jones Industrial Average.

Overall, despite a disappointing retail sales report, the stock market remained resilient and notched new highs, showcasing signs of strength amid economic uncertainties.