U.S. stocks advanced on Thursday, with the Dow and S&P 500 posting their eighth straight session of gains after strong results from megacaps Microsoft and Meta eased concerns about artificial intelligence spending.

Market Snapshot

The Dow Jones Industrial Average rose 83.6 points, or 0.21%, to 40,752.96, the S&P 500 rose 35.08 points, or 0.63%, to 5,604.14 and the Nasdaq Composite rose 264.4 points, or 1.52%, to 17,710.74.

Market Movers

Apple stock fell 3.8% in extended trading after reporting worse-than-expected sales in China and warned that tariffs will increase costs this quarter, a sign that geopolitical tensions are taking a growing toll on the world’s most valuable company.

Apple expects $900 million in higher costs from tariffs in the current period, the company said during a conference call to discuss quarterly results. Revenue will increase by a percentage in the low- to mid-single digits in the quarter, Apple added. Analysts have estimated 5% on average.

Amazon shares declined 2.7% in extended trading after giving a weaker-than-expected forecast for operating profit in the current quarter, pointing toward a long list of factors including tariffs and trade that may cause consumers to pull back on spending.

Beyond high-profile names like Apple and Amazon, several other companies also saw notable stock moves following their earnings reports.

Language learning app Duolingo forecast second-quarter revenue above Wall Street estimates and lifted its annual sales expectations on Thursday, as more users pay for subscriptions featuring AI features, sending its shares up 9% in extended trading.

Twilio Inc stock jumped over 8% in extended trading after reporting first-quarter financial results after the market close on Thursday. Total revenue was up 12% year-over-year; Communications revenue came in at $1.10 billion, up 13% year-over-year and Segment revenue totaled $75.7 million, up 1% year-over-year.

Reddit stock rose after forecasting second-quarter revenue above Wall Street estimates on Thursday, betting on growing digital advertising spend on the social media platform despite uncertainty over marketing budgets.

The company's shares, which rose as much as 20% in extended trading, pared gains to trade up 7%, after CEO Steve Huffman said on a post-earning call that the company expects some disruption for daily active users from Google search.

Microsoft was up 7.6% after fiscal third-quarter earnings and revenue beat analysts' expectations. Revenue rose 13% to $70.06 billion, topping estimates of $68.44 billion. Microsoft's cloud-computing business, which includes Azure, reported revenue of $26.8 billion, up 21% from a year earlier and higher than company forecasts. The company also issued upbeat guidance for each of its key units in the current fourth quarter.

Meta Platforms was up 4.4% after the parent company of Facebook and Instagram posted first-quarter revenue that rose 16% from a year earlier to $42.3 billion and beat analysts' expectations. Two of Meta's main revenue drivers, users and ad views, came in as expected, but ad price growth of 10% from a year earlier more than doubled projections. The company boosted its annual range for capital expenditures to $64 billion to $72 billion, largely on investments in artificial intelligence.

Tesla fell 0.6%. The Wall Street Journal reported the electric-vehicle maker's board had asked CEO Elon Musk to spend more time at the company and had contacted executive search firms to investigate the possibility of a new chief executive. The Journal report cited people familiar with the discussions. Tesla's official account on social-media platform X denied the report.

McDonald's fell 1.9% after the fast-food giant reported first-quarter revenue that missed analysts' expectations and said U.S. comparable-store sales dropped 3.6%. The chain cited "negative comparable guest counts," an indicator that customer traffic was decreasing. Fewer customers might be eating out as concerns about inflation and a possible recession continue to mount. Visits to McDonald's fell 2.6% during the first quarter, compared with a 1.4% drop for the entire retail and dining sector, according to data analytics company Placer.ai.

Qualcomm reported better-than-expected fiscal second-quarter earnings and revenue, but the outlook for the quarter ending June sent the stock tumbling 8.9%. The maker of mobile processors and 5G wireless chipsets said it expects a revenue range for the current third quarter of $9.9 billion to $10.7 billion, which at the midpoint was below consensus of $10.33 billion.

CVS Health jumped 4.1% after the company beat first-quarter earnings expectations. The health conglomerate, which holds a major insurer, a big retail pharmacy chain, and one of the largest U.S. pharmacy-benefit managers, reported adjusted earnings per share of $2.25, topping Wall Street estimates for $1.70. The company also raised adjusted earnings-per-share guidance for the year to range from $6 to $6.20, up from a previous range of $5.75 to $6.

Eli Lilly declined 12%. The pharmaceutical company posted better-than-expected first-quarter earnings but said it now sees 2025 adjusted earnings per share of $20.78 to $22.28 versus prior projections for $22.50 to $24. The company reiterated revenue guidance of $58 billion to $61 billion.

Moderna fell 5.3% after the vaccine maker posted a first-quarter loss of $2.52 a share, narrower than expectations that called for a loss of $3.12 a share. Revenue fell 35% to $108 million but beat Wall Street estimates of $106.2 million.

General Motors slashed guidance for 2025 and said tariffs would dent operating profit by $4 billion to $5 billion. GM expects operating profit of $10 billion to $12.5 billion. The midpoint of $11.3 billion is lower than prior guidance of $14.7 billion. The stock slipped 0.4%.

Robinhood Markets fell 5.1%. The digital brokerage reported first-quarter earnings that rose from a year earlier and beat analysts' expectations as revenue jumped 50% to $927 million on a surge in transaction-based revenue. While monthly active users rose to 14.4 million from 13.7 million last year, they missed analysts' calls for 15.1 million monthly users, according to FactSet.

Market News

US Weighs Easing Nvidia Chip Curbs on UAE as Trump Plans Visit

The US is weighing a potential easing of restrictions on Nvidia Corp. sales to the United Arab Emirates, according to people familiar with the matter, who said President Donald Trump could announce the start of work on a bilateral chip deal during his upcoming trip to the Gulf.

Nothing has been officially decided, the people said, emphasizing that the debate over semiconductor trade rules for the UAE and other countries remains ongoing in Washington. But talks about modifying AI chip curbs for the UAE in particular have been gaining steam at both the Commerce Department and the White House.

US Hiring Seen Slowing, With Brunt of Tariff Impact Coming Later

US employment growth probably decelerated in April and the jobless rate held steady, illustrating healthy yet moderating labor demand entering a period when trade policy risks chilling the hiring decisions.

Nonfarm payroll growth probably decelerated to 138,000 last month after blowing away expectations in March, according to the median estimate in a Bloomberg survey of economists. The joblessness rate is seen unchanged at 4.2%.

Apple to Source 19 Billion Chips from US Factories, Cook Says

Apple Inc. Chief Executive Officer Tim Cook said the company is planning to source more than 19 billion chips from the US for its devices.

The company will source tens of millions of processors from a new facility in Arizona this year, Cook said. The CEO is referring to Taiwan Semiconductor Manufacturing Company Ltd. plants in the state, which have started making processors for low-end iPads and Apple Watches, Bloomberg News has reported.