U.S. stocks climbed on Thursday as investors responded positively to robust earnings from major tech players, with Microsoft and Meta Platforms at the forefront of Wall Street’s upward momentum.

The S&P 500 rose 1.2%, while the Nasdaq Composite advanced 1.8%, bolstered by surging technology shares. The Dow Jones Industrial Average also posted modest gains, adding 0.7% by market close.

Microsoft Impresses with Cloud and AI Growth

Microsoft (NASDAQ: MSFT) shares gained over 3% after the tech giant reported better-than-expected quarterly results late Wednesday. Strong performance from its Azure cloud segment and continued momentum in AI integration across its product lines fueled investor enthusiasm.

Chief Financial Officer Amy Hood highlighted “sustained demand for AI-driven cloud services” as a major growth catalyst. Analysts also noted that Microsoft’s expansion of its Copilot AI into Office and enterprise offerings is starting to yield measurable business benefits.

Meta Surges on Ad Rebound and Cost Discipline

Meta Platforms (NASDAQ: META) jumped nearly 5%, topping earnings forecasts and demonstrating solid revenue growth driven by a resurgence in digital advertising. The company also emphasized progress in streamlining operations and controlling costs — a priority after its massive spending on metaverse initiatives last year drew investor criticism.

CEO Mark Zuckerberg said in a post-earnings call, “We’re striking a better balance between innovation and efficiency,” adding that Meta’s focus on AI tools for advertisers is translating into higher ad performance and engagement.

Broader Market Reaction

The rally in tech helped offset concerns over inflation and interest rates, which have weighed on market sentiment in recent weeks. Investors appeared encouraged by signs that the earnings season — particularly among large-cap tech firms — is delivering resilient results despite macroeconomic uncertainties.

“Tech earnings are setting the tone for the broader market,” said Lindsey Carter, senior strategist at Evercrest Capital. “These results reinforce the narrative that AI and cloud transformation are not just hype but real revenue drivers.”

Looking Ahead

All eyes now turn to Friday’s jobs report, which could influence the Federal Reserve’s next moves on interest rates. For now, however, the market is embracing a more optimistic tone, underpinned by confidence in the long-term potential of the tech sector.