Wall Street ends higher, S&P 500, Nasdaq notch biggest monthly gains in years.

U.S. stocks advanced on ⁠Thursday ⁠and the S&P 500 and the Nasdaq logged their ⁠biggest monthly gains in years as solid corporate earnings offset the war-related oil supply shock that has rattled ​markets and sent crude prices to four-year highs.

But oil prices eased and economic data showed the U.S. economy continues to grow at a healthy pace, helping as investors ‌geopolitical tensions and close the book on a ‌month of solid gains.

The rally gained momentum throughout the session, pushing all three major U.S. stock indexes sharply higher.

“A lot of the economic data calmed investors’ ⁠fears,” said Paul Nolte, ⁠senior wealth adviser & market strategist at Murphy & Sylvest in Elmhurst, Illinois. “Beyond that, you’ve got some pretty ​good earnings from a lot of different companies, and we’re seeing that broaden out today.”

“Until we see some changes to the market dynamic, as well as the economy, the momentum is on the bullish side,” Nolte added.

Industrials, powered by Caterpillar shares, put the Dow out front, while technology limited the Nasdaq’s gains in the wake of a spate ​of high-profile quarterly results released late Wednesday.

Four members of the Magnificent Seven group of artificial intelligence-related megacaps reported late Wednesday: Alphabet, Amazon, Meta Platforms ⁠and ⁠Microsoft. Alphabet jumped after reporting a ⁠record quarter for its cloud ​unit.

Meta and Microsoft shares slid on concerns over artificial intelligence-related expenditures.

“The spending continues to be at pace,” Nolte said. “They’re seeing still very robust ​growth and some are starting to report ⁠a return on the investment, which is new.”

Apple, another Magnificent Seven constituent, was slated to report after the bell.But ⁠first, check out my latest column on the signs that U.S. inflation is heading higher.

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OIL FEAR SHROUDS TECH SPLURGE

The Fed left rates unchanged on Wednesday, but three regional presidents voted to remove references to an “easing bias” in the central bank statement. Outgoing Chair Jerome Powell also surprised many by saying he’d ​stay on as a board member - at least for a time - after his chairmanship ends next month.

Powell’s term on the board will last until early ⁠2028, ⁠meaning there will be no immediate ⁠vacancy on the board for President ​Trump to fill.

Futures markets have wiped out all bets on Fed easing this year, with a one-in-three chance of a rate hike by next ​April. Treasury yields are climbing again, with the ⁠30-year yield briefly topping 5% for the first time since September. The dollar jumped briefly, but was knocked back below 160 yen by Japanese intervention worries.

The European Central Bank and Bank of England will issue their rate decisions today. Like the Fed and Bank of Japan, they’re both expected to keep policy on hold but warn of oil-related inflationary pressure.

Meantime, the mega-cap earnings season swept in after Wednesday’s bell. Alphabet surged more than 6% on its beat and impressive cloud business, while Meta went the other way, ⁠dropping more than 6% as investors fretted about its latest capex boost.

The share price reactions to Amazon and Microsoft’s results were ⁠more subdued, but overall, there was no major red or green flag on the gigantic AI buildout. Spending from the so-called hyperscalers this year is now expected to top $700 billion overall.

Whether that high and rising bill is justified or not remains to be seen, but it means the underlying demand for AI chips and equipment will go up another gear for now while the end game for the massive capex continues to be assessed.