New York, May 2 (Reuters) -* Wall Street kicked off May with broad gains on Thursday, with all major indices closing higher after strong quarterly results from tech giants alleviated investor concerns about an artificial intelligence slowdown amid economic headwinds.

Market Performance:

• S&P 500 gained 35.08 points (0.63%) to close at 5,567.19

• Dow Jones Industrial Average added 83.60 points (0.21%) to 38,225.66

• Nasdaq Composite surged 264.40 points (1.52%) to 17,707.63

Key Drivers:
The rally came after Meta Platforms (META.O) reported better-than-expected Q1 revenues, helping dispel market fears that President Donald Trump's new tariffs and U.S. economic deceleration could derail the AI sector's growth trajectory, according to CNBC analysis.

Market Context:

• The earnings beat from Meta (parent company of Facebook) followed similar strength from other tech leaders

• Investors had been concerned about AI investment sustainability amid:
  • New trade restrictions
  • Signs of economic cooling
  • High interest rate environment

• Thursday's gains partially offset April's 4.2% Nasdaq decline

Analyst Insight:
"These results demonstrate the AI monetization pipeline remains robust," said tech analyst Mark Li of Bernstein. "While macroeconomic challenges persist, the sector's fundamentals appear resilient."