Stocks rose Thursday as market participants remained cautious ahead of a potential U.S. government shutdown. The Dow Jones Industrial Average climbed more than 100 points, while the S&P 500 Index and Nasdaq Composite added 0.6% and 0.8%, respectively.

Here's how the market settled on Thursday:

S&P 500 Index (SPY  ): +0.59% or +25.19 points to 4,299.70

Dow Jones Industrial Average (DIA  ): +0.35% or +116.07 points to 33,666.34

Nasdaq Composite Index (QQQ  ): +0.83% or +108.43 points to 13,201.28

Driving market moves, investors are focused on developments out of Washington D.C. as lawmaker negotiation on a U.S. spending bill continue before the Oct. 1 deadline; failing to reach an aggreement and pass a new spending package will result in a government shutdown.

In economic news, U.S. gross domestic product (GDP) rose at an annualized rate of 2.1% in the second quarter, according to a third and final estiamte from the Commerce Department released Thursday. The final estimate was unchanged from the previous reading, but ticked slightly below expectations.

The U.S. also revised its previous reading on GDP for the first quarter growth for each of the year from 2020 to 2022. The new reading as -5.3%, 5.2% and -2%, respectively, from priors readings of -4.6%, 6.3% and -1.6%.

Separately, pending U.S. home sales fell by a more-than-expected rate in August as more potential buyers are squeezed out of the housing market by higher interest rates. Sales fell 7.1% from July to August, according to the National Association of Realtors report released Thursday, reversing the previous 0.9% rise for July.

"Mortgage rates have been rising above 7% since August, which has diminished the pool of home buyers," said Lawrence Yun, NAR's chief economist, in a statement. "Some would-be home buyers are taking a pause and readjusting their expectations about the location and type of home to better fit their budgets."

Meanwhile, initial jobless claims totaled 204,000 for the week ended Sept. 23, according to the Labor Department's report Thursday, coming in below estimates. Continuing claims rose by 12,000 to 1.67 million, slightly above estimates.

Shares of Peloton Interactive (PTON  ) rose Thursday on news the home fitness equipment company is partnering with Lululemon (LULU  ) to collaborate on apparel and digital content. The five-year partnership, announced Wednesday, will bring Peloton's exercise content to Lululemon's app and Lululemon will become Peloton's primary athletic apparel partner.

Lululemon said is plans to stop selling workout streaming product Mirror by the end of the year. The company has been exploring a sale of Mirror after sales failed to meet expectations and Lululemon had to pay a $443 million impairment charge, the company said earlier this year.

GameStop (GME  ) shares climbed higher before reversing gains Thursday after the retailer announced billionaire activiti investor Ryan Cohen will assume the role as Chief Executive Officer, effective immediately. The company said Cohen will be receive any compensation for his roles as CEO, president and executive chairman.

Micron Technology (MU  ) shares fell after the chipmaker issued weaker-than-expected earnings guidance for its current quarter after posting better-than-expected fiscal fourth quarter results. The company expects a fiscal first-quarter loss of $1.07 per share on a non-GAAP basis.

For Friday, market participants will turn their attention to the latest reading of the Federal Reserve's preferred inflation gauge -- the personal consumption expenditures index.