Microsoft soared by 7.6% after the company reported better than expected fiscal third quarter results and provided strong full-year guidance. Meta Platforms also shot up by 4.2% after reporting first quarter results that exceeded analyst estimates on both the top and bottom lines. Pharma giant Eli Lilly (LLY) plummeted by 11.7% after reporting better than expected first quarter results but cutting its full-year profit forecast. Qualcomm plunged by 9% after the chipmaker reported fiscal second quarter results that beat expectations.

Buying interest faded later in the day as traders reacted to disappointing U.S. economic data. The Labor Department reported that initial jobless claims rose sharply to 241,000 for the week ending April 26th, up 18,000 from the prior week's revised 223,000. This was well above economists' expectations of 224,000. Institute for Supply Management also released a report showing a slight decrease by its reading on U.S. manufacturing activity in the month of April. It’s manufacturing PMI edged down to 48.7 in April after slipping to 49.0 in March, with a reading below 50 indicating contraction.

Microsoft leads the software and the sector substantially moved upwards, driving the Dow Jones U.S. Software Index up by 4.3%. Networking stocks were significantly strong as reflected by the 4.2% spike by the NYSE Arca Networking Index. Oil service stocks also moved sharply higher amid a rebound by the price of crude oil, with the Philadelphia Oil Service Index jumping by 2.6%. Retail stocks too saw notable strength while pharmaceutical, gold and healthcare stocks came under considerable pressure over the course of the session.

Japanese and Australian stocks moved upwards, although most major markets in the Asia-Pacific region were closed for Labor Day. Japan's Nikkei 225 Index jumped by 1.1%, while Australia's S&P/ASX 200 Index crept up by 0.2%. Most major European markets closed for May Day, U.K. stocks showed a lack of direction over the course of the trading session. The U.K.'s FTSE 100 Index eventually ended the day just above the unchanged line.

In the bond market, treasuries moved to the downside after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, climbed 5.4 bps to 4.23%.