The U.S. stock market closed higher on Thursday, with all three major indices posting gains. The S&P 500 rose 1.02% to 7,209.01, the Nasdaq Composite gained 0.89% to 24,892.31, and the Dow Jones Industrial Average climbed 1.62% to 49,652.14. The broad-based rally was driven by strong earnings reports from Alphabet and Caterpillar, which helped offset concerns about Iran's nuclear ambitions. The "Magnificent 7" tech stocks also contributed to the gains, with Alphabet shares jumping as Meta fell. Meanwhile, the market was also influenced by positive GDP data, which showed continued economic growth in the U.S. However, oil prices fell back from a four-year high, which could have a negative impact on energy-related stocks.

The overall tone of the market session was risk-on, with investors favoring growth stocks and sectors. The rally was uneven, with the Dow outperforming the Nasdaq, which slipped after tech earnings. Big Tech stocks were mixed, with Meta falling while Lilly surged 10%. The market was also influenced by concerns about the Federal Reserve's interest rate policy, with some investors expecting a rate cut in the near future. Overall, the market was driven by strong earnings reports and positive economic data, with concerns about Iran and oil prices providing some counterbalance.