US stocks advanced at open on Thursday following strong earnings from major technology firms, which helped ease concerns that economic headwinds could derail momentum.
The S&P 500 rose nearly 1%, the Nasdaq Composite added almost 2%, and the Dow Jones Industrial Average gained 233 points, or 0.6%.
Investor sentiment improved after Meta Platforms reported better-than-expected revenue for the first quarter.
Meta posted first-quarter revenue of $42.31 billion, topping the average analyst estimate of $41.40 billion, according to LSEG data.
Earnings came in at $6.43 per share, ahead of expectations for $5.28 per share.
On its earnings call, CEO Mark Zuckerberg said the company is “performing very well” and is “well-positioned to navigate the macroeconomic uncertainty.”
Microsoft also delivered strong results, with both revenue and profit exceeding expectations in its fiscal third quarter.
Microsoft reported revenue of $70.07 billion and earnings of $3.46 per share for the quarter, surpassing analyst expectations.
Forecasts had called for revenue of $68.42 billion and earnings of $3.22 per share.
Its Azure cloud business posted solid growth, and the company issued optimistic guidance.
Microsoft shares rose around 10%, while Meta climbed around 6%. Nvidia and other AI-related stocks also moved higher, with Nvidia gaining more than 4%.
US jobless claims came spike
Initial jobless claims rose more than expected last week, signaling potential strain in the US labor market as broader economic indicators weaken.
The Labor Department reported Thursday that seasonally adjusted initial claims totaled 241,000 for the week ended April 26, an increase of 18,000 from the prior week and above the 225,000 estimate from economists surveyed by Dow Jones.
This marked the highest reading since February 22.
Continuing claims, which are reported with a one-week lag and offer a broader view of unemployment trends, climbed to 1.92 million, up 83,000 from the previous week and the highest level since November 13, 2021.
A significant portion of the increase came from New York, where unadjusted claims more than doubled to 30,043. The report did not provide a specific explanation for the surge.
The District of Columbia, which had experienced a notable rise in claims earlier this year amid efforts by President Donald Trump to reduce the federal workforce, recorded a modest uptick last week.
The data follows Wednesday’s GDP report showing a 0.3% annualized contraction in the first quarter, the first decline in three years.
That drop was driven largely by a spike in imports ahead of new tariffs, alongside softer consumer spending and reduced government expenditures.
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