The Dow Jones Industrial Average closed above 50,000 on Thursday for the first time since the Iran conflict began, as strong earnings from Cisco Systems and a rally in semiconductor stocks propelled US equity benchmarks to fresh records.
The S&P 500 climbed 0.8% to a new all-time high, while the technology-heavy Nasdaq Composite added 0.9% to also close at a record. The rally was fueled by better-than-expected corporate profits, which helped investors look past persistent inflation concerns and geopolitical uncertainty.
The advance was broad, with the Dow rising 370.26 points to 50,063.46 and the S&P 500 adding 56.99 points to finish at 7,501.24. Technology stocks were the clear leaders. Cisco Systems shares surged roughly 16.5% after the networking giant beat fiscal third-quarter expectations and raised its annual revenue forecast, citing strong demand from hyperscale customers for its AI-related infrastructure. Further boosting sentiment, Nvidia shares rose 2.49% after reports that Washington had approved about 10 Chinese firms to purchase its H200 AI chips.
The market's strength comes even as inflationary pressures remain a key concern. Producer prices in April saw their largest monthly increase since March 2022, and traders have increased bets on the Federal Reserve potentially raising interest rates by the end of the year, according to CME Group's FedWatch Tool. Investors are also monitoring a summit between President Donald Trump and Chinese President Xi Jinping, with the inclusion of tech executives like Nvidia CEO Jensen Huang seen as a positive sign for future technology access and trade relations.
This article is for informational purposes only and does not constitute investment advice.
