Weekly jobless claims drop; August housing starts disappoint The S&P 500 and Dow Jones Industrial Average closed at record levels on Thursday as investors welcomed the Federal Reserve’s commitment to low interest rates long after the ending of monetary stimulus. Earlier in the session, investors cheered China’s efforts to boost economic growth, while upbeat jobs data outweighed weakness in U.S. housing. The S&P 500 SPX, +0.49% added 9.79 points, or 0.5%, to 2,011.36, closing at a record high. Financials led Thursday’s gains. The Dow Jones Industrial Average DJIA, +0.64% gained 109.14 points, or 0.6%, to 17,265.99, also setting a new record. The Nasdaq Composite COMP, +0.68% rose 31.24 points, or 0.7%, to 4,593.43. Follow today’s stock market coverage in a live blog. According to Peter Cardillo, chief market economist at Rockwell Global Capital, enthusiasm ahead of Alibaba debut added to an overall positive market reaction among other factors Applications for jobless benefits dropped to the lowest level since mid-July, however, construction started on new U.S. homes tumbled in August, pulling back after a surge in July. Separately, U.S. manufacturers in the Philadelphia region continued to do brisk business in September as hiring intentions rose to a 31-year high, a strong signal that companies expect growth to improve over the rest of the year. News from China boosted global equities. China’s central bank cut short-term borrowing costs for banks on Thursday, the same week it announced a cash injection into the country’s five biggest banks. For markets, this is a “massive statement of intent,” amid growth concerns for the country, said Craig Erlam, market analyst at Alpari U.K. Also see: Credit Suisse sticks to stocks, but sees a correction ahead Stocks to watch: Alibaba BABA, +0.00% is expected to start trading on the New York Stock Exchange on Friday morning. The initial public offering could raise over $25 billion, making it the biggest ever. Also read: Alibaba IPO gives insiders rare chance to sell early Rite Aid Corp. RAD, -18.52% is tumbling 19% after the drugstore chain slashed its outlook, blaming generic drugs. Pier 1 Imports Inc. PIR, -18.53% sank 18% after earnings fell short of hopes and the company cut its forecast for the year late Wednesday. Read more about the day’s notable movers here. Other markets: The FTSE 100 UKX, +0.67% closed higher as Scottish voters headed to the polls, with indications still pointing to a narrow victory for unionists. European stocks SXXP, +0.84% also got a lift from China’s cut in borrowing costs. Japanese stocks NIK, +1.58% climbed to an eight-month closing high, as the yen USDJPY, +0.37% hit a six-year low against the greenback, aiding export-related stocks. The euro EURUSD, -0.16% held steady after the European Central Bank allotted 82.6 billion euros in the first round of its new four-year loans, though that take-up fell short. Gold prices GCZ4, -0.32% settled $9 lower at $1,226.9 per troy ounce, pressured by a strong dollar. article