US benchmark equity indexes advanced Thursday as a post-earnings rally in Microsoft (MSFT) and Meta Platforms (META) shares countered seemingly downbeat economic data.

The Nasdaq Composite ended 1.5% higher at 17,710.7, while the S&P 500 rose 0.6% to 5,604.1. The Dow Jones Industrial Average edged up 0.2% to 40,753. Both the S&P 500 and the Dow stretched their winning streak to an eighth session.

Most sectors were in the green, led by technology, while health care saw the biggest drop.

Microsoft shares jumped 7.6%, the top gainer on the Dow and among the best on the S&P 500. The tech giant late Wednesday logged stronger-than-expected fiscal third-quarter results as demand for its cloud offerings grew.

Meta shares closed 4.2% higher, among the best performers on the S&P 500. The Facebook parent late Wednesday posted stronger-than-projected first-quarter results and projected revenue growth for the ongoing three-month period on a sequential basis.

Kohl's (KSS) gained 7.6%. The department-store chain named Chair Michael Bender as interim chief executive after its board removed Ashley Buchanan from the top role due to violations of the conflict of interest policy.

Eli Lilly (LLY) sank nearly 12%, the second-worst performer on the S&P 500. The drugmaker slashed its full-year earnings outlook.

US Treasury yields were higher, with the two-year rate up 8.8 basis points to 3.70% and the 10-year rate increasing 5.4 basis points to 4.22%.

In economic news, the US manufacturing sector fell deeper into contraction in April amid weak demand, according to Institute for Supply Management, while S&P Global (SPGI) data showed that activity stalled.

"Demand and output weakened while input strengthened further, conditions that are not considered positive for economic growth," said Timothy Fiore, chair of the ISM's manufacturing business survey committee.

Weekly applications for unemployment insurance reached the highest level in about two months, while continuing claims were at a multiyear high, government data showed Thursday.

US job cuts totaled 105,441 last month, up 63% year on year and the highest tally for April since 2020, according to a separate report released by Challenger Gray & Christmas Thursday. Sequentially, job cuts declined 62% last month.

"Though the government cuts are front and center, we saw job cuts across sectors last month," said Andrew Challenger, senior vice president at the outplacement firm. "Employers are slow to hire and limiting hiring plans as they wait and see what will happen with trade, supply chain, and consumer spending."

The Bureau of Labor Statistics is expected to report Friday that the US economy added 135,000 nonfarm jobs in April, which would mark a drop from a 228,000 increase reported for the month prior, according to a Bloomberg poll.

West Texas Intermediate crude oil was up 1.5% at $59.06 a barrel.

The Trump administration has reached out to China to begin discussions on tariffs, Bloomberg News reported, citing a state-run media outlet. US Treasury Secretary Scott Bessent reportedly said earlier in the week that "it's up to China to de-escalate" trade tensions between the two countries.

Gold declined 2.3% to $3,243.10 per troy ounce, while silver fell 0.7% to $32.62 per ounce.