Wall Street rebounded Thursday on better-than-expected U.S. economic growth.

The Commerce Department reported Thursday that the U.S. economy grew at a 2.5 percent in the fourth quarter last year, faster than earlier estimate of 2.2 percent.

Earlier in the day, the Labor Department released a report that showed the number of newly laid-off workers signing up for unemployment benefits last week declined.

Meanwhile, surge of crude prices, which rose above 66 dollars a barrel on Iranian tensions, also pushed energy shares higher.

The Dow Jones industrial average rose 48.39, or 0.39 percent, to 12,348.75. The Standard & Poor's 500 index rose 5.30, or 0.37 percent, to 1,422.53, and the Nasdaq composite index edged up 0.78, or 0.03 percent, to 2,417.88.