U.S. stocks rebounded strongly on Thursday as investors digested a batch of generally positive economic reports.

The Dow Jones Industrial Average jumped 254.69 points, or 1.07 percent, to 24,103.11. The S&P 500 increased 35.87 points, or 1.38 percent, to 2,640.87. The Nasdaq Composite Index was up 114.22 points, or 1.64 percent, to 7,063.44.

In the week ending March 24, the advance figure for seasonally adjusted initial claims for state unemployment benefits was 215,000, a decrease of 12,000 from the previous week's revised level, the U.S. Labor Department announced Thursday. This is the lowest level for initial claims since Jan. 27, 1973 when it was 214,000.

The four-week moving average was 224,500, a decrease of 500 from the previous week's revised average.

The final reading of U.S. Consumer Sentiment Index came in at 101.4 in March, marking the highest level since 2004, according to a survey released by the University of Michigan on Thursday.

Meanwhile, U.S. personal income increased 67.3 billion U.S. dollars, or 0.4 percent, in February, while personal consumption expenditures increased 27.7 billion dollars, or 0.2 percent, the Commerce Department said Thursday. Both figures are on par with market consensus.

"Consumer spending spiked in September and remained strong before the holidays, but has been anemic since. It's entirely possible - likely, even - consumption will recover now that the saving rate has risen a percentage point from its recent low," said Chris Low, chief economist at FTN Financial, in a note.

U.S. stock markets will be closed on Friday due to the Good Friday holiday.

For the holiday-shortened week, all three major indices posted solid gains, with the Dow, the S&P 500 and the Nasdaq jumping 2.4 percent, 2.0 percent and 1.0 percent, respectively.