US stocks advanced on Thursday, with the Dow Jones Industrial Average reclaiming the 50,000 level and the S&P 500 closing at another record high as investors reacted to strong technology earnings, improving semiconductor sentiment, and developments from the summit between President Donald Trump and Chinese President Xi Jinping in Beijing.
The Dow rose about 375 points, or 0.75%, to close near 50,068.
The S&P 500 gained roughly 0.77% to finish at a fresh record high above 7,500, while the Nasdaq Composite climbed about 0.88% to another all-time closing high.
Technology shares led the market higher, with investors continuing to favor artificial intelligence-linked companies despite ongoing concerns surrounding inflation, elevated oil prices, and geopolitical tensions in the Middle East.
Cisco and Nvidia power market rally
Cisco Systems emerged as one of the session’s biggest gainers after the networking company reported stronger-than-expected third-quarter results, raised its annual revenue forecast, and announced plans to cut nearly 4,000 jobs as part of a restructuring initiative.
Cisco shares surged roughly 12% and reached an all-time high during the session.
The stock’s gains helped lift the Dow significantly, reflecting renewed investor enthusiasm for companies tied to AI infrastructure spending.
Nvidia shares also climbed more than 4% after Reuters reported that the US government had approved sales of the company’s H200 AI chips to approximately 10 Chinese firms, though shipments have not yet begun.
The gains added to a broader semiconductor rally that has driven US equities higher in recent months, as investors continue betting on long-term AI demand growth.
Amazon also contributed to the Dow’s advance. Over the past two months, Cisco has surged 46%, while Amazon and Nvidia have gained 28% and 30%, respectively.
Elsewhere in technology, AI chipmaker Cerebras soared nearly 90% above its offer price during its US market debut, while shares of Nebius Group rose after Northland Capital raised its target price on the company.
Trump-Xi summit remains central focus
Investors also closely monitored developments from the high-stakes summit between Trump and Xi, which focused on trade, tariffs, Taiwan, semiconductor supply chains, and the ongoing Iran conflict.
Trump attended the meetings alongside a delegation that included Nvidia CEO Jensen Huang and Tesla CEO Elon Musk.
The summit comes amid heightened geopolitical tensions following disruptions tied to the US-Israel conflict involving Iran, which has affected global energy markets and shipping routes.
Iran and the Strait of Hormuz were reportedly key discussion points during the talks.
According to a White House official, both countries agreed that the strategically important waterway should remain open.
President Trump also said China had agreed to purchase 200 aircraft from Boeing, though Boeing shares ended the session lower.
Inflation concerns persist despite market optimism
The stock market rally came even as investors continued grappling with signs that inflation pressures may remain elevated for longer than expected.
Recent economic data showed retail sales largely met expectations, though higher gasoline prices linked to the Iran conflict contributed significantly to consumer spending gains.
Import prices also recorded their biggest increase since October 2022, driven largely by rising energy costs.
A series of inflation reports released this week reinforced concerns that elevated oil prices could spread into broader categories across the economy, reducing expectations for near-term Federal Reserve rate cuts.
Kansas City Federal Reserve President Jeffrey Schmid described inflation as the most “pressing risk” facing the US economy, while also characterizing the broader economy as “resilient.”
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