S&P nears 1600 boosted by data, ECB rate cut

The number of Americans filing new claims for jobless benefits fell sharply last week to a five-year low. That follows a recent string of underwhelming data, including a slow rate of growth in factory activity in the United States and China.

In an effort to boost the recession-hit euro zone economy, the ECB cut interest rates for the first time in ten months and held out the possibility of further action.

The ECB move follows Wednesday's Federal Reserve statement in which the U.S. central bank said it will continue its bond buying scheme to keep interest rates low and spur growth, and added it would step up purchases if needed.

The Dow Jones industrial average rose 119.57 points or 0.81%, to 14,820.52, the S&P 500 gained 14.98 points or 0.95%, to 1,597.68 and the Nasdaq Composite added 44.31 points or 1.34%, to 3,343.44.

The S&P fell almost 1% Wednesday in its largest drop in two weeks. The benchmark earlier hit its record high intraday level at 1,598.58 and is up nearly 12% so far this year.

Visa hit a record high of $179.66, a day after the world's largest credit and debit card network reported strong quarterly results and rising growth in the key U.S. market. Shares were last up 5.8% to $175.66.

In a boost to the technology sector, the PHLX semiconductor index rose 1.1% after earlier hitting its highest level in two years.

General Motors rose 4.1% to $31.43 after reporting a stronger-than-expected quarterly profit as its North American business improved and its loss in Europe was smaller than Wall Street estimated.

Gilead Sciences shares jumped 5.2% to $52.76 after its combination hepatitis C pill proved effective in a small trial.