U.S. equities advanced Thursday, led by a rally in technology shares, while investors evaluated easing trade tensions with China and mixed economic signals ahead of a potential interest rate decision in June.

The S&P 500 technology sector climbed over 2%, supported by a 1.7% rise in Alphabet (GOOGL, Financials) ahead of its earnings release. The broader S&P 500, Dow Jones Industrial Average, and Nasdaq Composite also posted gains as investors digested recent commentary on U.S.-China trade policy and Federal Reserve outlook.

The dollar weakened 0.24% against a basket of major currencies after two days of gains. The euro rose 0.37% to $1.1355 and the Japanese yen appreciated 0.52% to 142.7.

Beijing called on Washington to remove all unilateral tariffs, a position that the White House appeared open to reviewing, according to recent remarks. Investors interpreted the comments as a potential sign of thawing in the prolonged U.S.-China trade dispute.

Meanwhile, Federal Reserve Bank of Cleveland President Beth Hammack said the central bank should remain patient amid economic uncertainty but did not rule out the possibility of a rate cut in June, depending on incoming data. Benchmark 10-year U.S. Treasury yields fell to 4.33%, down roughly five basis points from the prior session, while the two-year yield dropped to 3.807%.

Uncertainty continued around monetary policy as President Donald Trump criticized Federal Reserve Chair Jerome Powell before retracting calls for his resignation. Analysts said the mixed signals added to volatility.

First-quarter corporate results presented a varied picture. Companies cited inflationary pressures and policy-related unpredictability as key challenges. Shares of International Business Machines (IBM, Financials) declined after the company said 15 U.S. government contracts were canceled due to federal cost-cutting.

Economic data showed initial jobless claims ticked up slightly last week, signaling continued labor market strength. However, March orders for durable goods rose more than expected. Analysts attributed the jump to businesses accelerating purchases ahead of potential tariff-related cost increases.

In commodities, spot gold rose 1.05% to $3,321.99 per ounce. U.S. crude oil gained 0.32% to $62.47 per barrel, and Brent crude rose 0.21% to $66.26.