01:52 PM EDT, 05/01/2025 (MT Newswires) -- US equity indexes advanced after midday Thursday following strong earnings from Microsoft ( MSFT ) and Meta Platforms ( META ) and amid speculation that trade tensions are easing between China and the US, the world's two largest economies.

The Nasdaq Composite jumped 2% to 17,790.5, the S&P 500 gained 1% to 5,627.2 and the Dow Jones Industrial Average climbed 0.6% to 40,915.2. Technology, communication services and consumer discretionary led the gainers, and health care paced the decliners.

In company news, Meta (META) shares rose 4.4%. The company's Q1 earnings and revenue climbed more than Wall Street expected. Several analysts raised their price targets on the stock.

Microsoft ( MSFT ) shares surged 8.3%. The company's fiscal Q3 earnings and sales rose more than analysts expected, partly on demand for cloud products.

Apple ( AAPL ) and Amazon.com's ( AMZN ) results are due after the market closes.

Media reports cited the state-run China Central Television as saying that the US has been proactively reaching out to the Asian country through various channels, seeking to negotiate tariff issues.

The ICE Dollar Index jumped 0.8% to 100.23, reflecting dollar strength against a basket of major currencies. Gold futures slumped 3% to $3,221.00 per ounce.

Most US Treasury yields rose, with the 10-year up 4.5 basis points to 4.22% and the two-year rate 6.9 basis points higher at 3.69%.

In economic news, the Institute for Supply Management's US manufacturing index fell to 48.7 in April from 49.0 in March, compared with expectations of 47.9 in a survey compiled by Bloomberg. The April reading is a five-month low and the second consecutive print in contractionary territory, according to a Stifel note.

Meanwhile, US initial jobless claims rose to 241,000 in the week ended April 26 from an upwardly revised 223,000 in the previous week, compared with expectations for 223,000 in a survey of analysts compiled by Bloomberg. The April print is the highest since February, according to Stifel.

Claims jumped largely because of an increase in the state of New York, as workers such as janitors and bus drivers in public schools applied for benefits during the spring break period, the Stifel note said.

The four-week moving average for claims, however, climbed by 5,500 to 226,000. Continuing claims, or the number of unemployed individuals who qualify for benefits, rose 83,000 to 1.92 million in the week ending April 26, the highest since November 2021, according to Stifel.

April non-farm payrolls, a closely monitored labor-market report, are due Friday.

West Texas Intermediate crude oil futures rose 0.7% to $58.62 a barrel.