S&P surpasses 1,700 on data, central bank support

US stocks climbed on Thursday, with the S&P 500 topping the 1,700 level for the first time, after economic data pointed to a modestly improving economy and the Federal Reserve kept its loose money policy in place.

In its latest policy statement on Wednesday, the US Federal Reserve gave no hint that a reduction in the pace of its bond-buying programme was imminent, as the economy continues to recover but is still in need of support.

Global central banks on Thursday also remained accommodative with the European Central Bank's President Mario Draghi reiterating the ECB's rates will remain at their present level or lower for an "extended period" of time. Data on weekly US initial jobless claims and national manufacturing came in better than expected, while construction spending dropped 0.6 per cent in June, below forecasts calling for a 0.4 per cent rise.

The Dow Jones Industrial Average gained 125.40 points, or 0.81 per cent, to 15,624.94. The Standard & Poor's 500 Index climbed 16.82 points, or 1.00 per cent, to 1,702.55, and the Nasdaq Composite Index rose 36.80 points, or 1.01 per cent, to 3,663.17. Earlier in the session, the benchmark S&P rose to a new intra-day high of 1,704.97.