The S&P 500 rose Thursday as robust earnings from Microsoft and Meta Platforms, provided fresh signs that the artificial intelligence boom is far from over, fueling gains across stocks. 

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average gained 82 points, or 0.6%, the S&P 500 index added 0.6%, and the NASDAQ Composite gained 1.5%.

Microsoft, Meta surge after strong Q1 results

Meta Platforms (NASDAQ:META) shares jumped more than 4% after quarterly results and guidance topped consensus. The parent company of Facebook and Instagram anticipated full-year 2025 capital expenditures in the range of $64-$72 billion, increased from their prior guidance of $60-65 billion. 

"We believe the higher level of investment is justified, as the infusion of AI capabilities across the company’s ad stack and content recommendation engines are already driving tangible benefits for Meta’s Family of Apps and Reality Labs," Wedbush said in a Thursday note.

Microsoft (NASDAQ:MSFT) shares surged more than 7% after the software giant’s first-quarter revenue increased 13%. It also forecast cloud-computing revenue growth of 34% to 35% for the fiscal fourth quarter.

"Microsoft surprised with a much better-than-expected top-line performance, saying that through late-April they had not seen any material demand pressure from the macro/tariff issues," RBC said in a Thursday note.

There are more corporate earnings to digest Thursday, with the highlights being from iPhone-maker Apple (NASDAQ:AAPL) and e-commerce titan Amazon (NASDAQ:AMZN) after the close.

Elsewhere, McDonald’s (NYSE:MCD) stock fell more than 1% after the fast food giant posted a surprise decline in first-quarter global comparable sales, with CEO Chris Kempczinski adding the company was navigating the "toughest of market conditions."

Eli Lilly (NYSE:LLY) stock dropped 11% after the drugmaker posted disappointing sales of its popular weight-loss drug, Zepbound.

Biogen (NASDAQ:BIIB) stock rose slightly after the drugmaker beat first-quarter profit and revenue expectations, as strong demand for its rare disease drugs helped offset declining sales of its multiple sclerosis drugs.

Estee Lauder (NYSE:EL) stock fell more than 11% after flagging ongoing challenges in its travel retail business and subdued consumer sentiment in Asia.

Initial claims rise

The number of Americans filing new applications for unemployment benefits increased more than expected last week, as initial claims for state unemployment benefits jumped 18,000 for the week ended April 26, the Labor Department said on Thursday. 

This potentially hinted at a pick-up in layoffs from tariffs, which weighed on the economy in the first quarter, ahead of Friday’s key nonfarm payrolls report.

The economy contracted last quarter for the first time in three years, swamped by a flood of imports as businesses tried to avoid duties from President Donald Trump’s tariffs.

(Ayushman Ojha contributed to this article.)