U.S. stocks surged Thursday as a wave of blockbuster earnings reports from corporate heavyweights overwhelmed lingering geopolitical jitters and sent the S&P 500 above the 7,200 level for the first time. Caterpillar, Alphabet, Eli Lilly, and Qualcomm all delivered blowout quarters, giving investors the confidence to push equities higher despite a mixed macroeconomic backdrop. The session capped April as the best month for stocks since November 2020, a remarkable turnaround after the volatility that dominated the first quarter.
Index Closing Levels
The S&P 500 (SPI:SP500) climbed 73.06 points, or 1.02%, to close at a record 7,209.01, its first finish above the 7,200 threshold. The Nasdaq Composite rose 219.07 points, or 0.89%, to 24,892.31, also a new all-time closing high. The Dow Jones Industrial Average led the charge with a gain of 790.33 points, or 1.62%, finishing at 49,652.14, powered by Caterpillar’s post-earnings jump. On the economic front, PCE inflation data showed headline prices rose 0.7% in March and 3.5% year over year, while core readings came in at 0.3% monthly and 3.2% annually. Initial jobless claims dropped to 189,000, well below the 212,000 economists had expected, suggesting the labor market remains resilient.
Notable Movers
Caterpillar (CAT) soared nearly 10% after the heavy equipment maker reported first-quarter results that topped estimates across the board and raised its full-year revenue outlook. The stock was the single largest contributor to the Dow’s 790-point gain, as investors cheered strong demand in infrastructure and mining.
Alphabet (GOOGL) jumped 10% after Google’s parent company posted first-quarter revenue that beat Wall Street expectations and raised its 2026 capital expenditure guidance to as much as $190 billion, underscoring the scale of its AI infrastructure buildout.
Qualcomm (QCOM) surged 16% on a data center surprise, as the chipmaker’s second-quarter earnings report showed its diversification beyond smartphones is gaining traction. Analysts pointed to the company’s growing server and automotive chip businesses as catalysts.
Eli Lilly (LLY) climbed roughly 7% after reporting earnings of $8.55 per share versus the $6.97 consensus, powered by Mounjaro sales up 125% year over year and Zepbound revenue up 80%. The company raised its fiscal 2026 guidance.
Meta Platforms (META) fell 8.6%, the session’s notable laggard among megacaps, as investors balked at the company’s latest capital spending plans and softer-than-expected user growth figures. Microsoft (MSFT) also slipped 3.9% after warning that memory costs would push spending to $190 billion this year.
Looking Ahead
After-hours attention turns squarely to Apple and Amazon, both of which reported results after the bell Thursday. Amazon delivered a strong beat with earnings of $2.78 per share on $181.52 billion in revenue, well above consensus. Investors will parse both reports Friday morning for signals on consumer spending and AI monetization. The four tech megacaps that have reported so far outlined a combined $725 billion in AI spending for 2026, a staggering figure that will keep the sustainability of that investment front and center. With the Fed’s next move still uncertain and oil prices easing from recent highs near $110 a barrel, the interplay between robust corporate profits and sticky inflation will define the market’s direction heading into May.