U.S. stocks closed out their best month since 2020, overcoming a divided Federal Reserve, Middle East hostilities and a deluge of tech earnings reports. The major indexes climbed Thursday, powered by strong quarterly results from Alphabet and Caterpillar that reassured investors the economy remains resilient.

Alphabet shares jumped nearly 10% after the Google parent reported earnings that beat Wall Street expectations. Caterpillar surged roughly 10% as the heavy-machinery maker revealed robust demand for construction equipment, suggesting businesses continue investing despite elevated interest rates. Both results indicated corporate America is holding up better than many economists predicted.

April's rally demonstrated how enthusiasm for corporate profits and the AI boom can override geopolitical tensions and monetary-policy uncertainty. The market's ability to absorb multiple headwinds signals underlying strength in the economy as investors move toward the year's second half.