NEW YORK (CNNMoney.com) - Stocks rose for the second straight session Thursday after a report on economic growth came in weaker than expected, giving investors a reason to bet the Federal Reserve will pause with its rate-boosting campaign in June.

The Dow Jones industrial average (up 18.97 to 11,117.32, Charts) added 0.4 percent and the broader Standard & Poor's 500 index (Charts) gained 0.6 percent after the market open.

The Nasdaq composite (up 10.41 to 2,169.17, Charts) jumped 0.7 percent.

Before the market open, the government said the gross domestic product, the broadest measure of the nation's economic activity, steamed ahead during the first quarter.

The Commerce Department revised GDP up to 5.3 percent. While that exceeded the 4.8 percent rate initially estimated for the period, it fell below the 5.8 percent growth rate economists surveyed by Briefing.com had expected.

A closely watched inflation measure in the report, which measures prices paid by consumers for items, excluding food or energy, held steady at a 2 percent annual gain, calming inflation fears in the market.

Investors have been nervous that rising inflation pressures will sway the Fed to keep hiking interest rates. The Fed has raised interest rates 16 straight times since June 2004 in a bid to contain inflation, and some investors and policy-makers are nervous the central bank could overshoot, pushing rates too high and hurting economic growth - and corporate earnings.

In corporate news, the Wall Street Journal said Regions Financial (unchanged at $35.53, Research) has agreed to buy AmSouth Bancorp (unchanged at $28.90, Research) for about $10 billion. But the deal is worth 2 percent less than AmSouth's most recent closing price, which the paper says could make it difficult to win shareholder approval of the deal.

MasterCard (unchanged at $0.00, Research) made its market debut. The credit card company priced its initial public offering of stock at $39 a share, below the $40 to $43 forecasted range.

Internet telephone service provider Vonage Holdings (unchanged at $14.85, Research), which saw its IPO start trading Wednesday, recorded the worst market debut this year as its shares slid nearly 13 percent on its first day of trading Wednesday.

U.S. light crude oil for July delivery rose 34 cents to $70.20 a barrel in electronic trading.

Treasury prices edged higher, lowering the yield on the benchmark 10-year note to 5.03 percent, down from 5.04 percent late Wednesday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar edged higher against the euro and drifted lower versus the yen.

COMEX gold rose $5.50 to $643 an ounce.

In global trade, major Asian markets ended lower, and European shares were mostly higher in early afternoon trading.

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Yields throw the Fed a curve -- click here.