Wall Street Hits Record Highs as Tech Stocks Lead Market Rally
Wall Street moved sharply higher on Thursday as technology stocks powered major U.S. indexes to fresh record levels.
Investor optimism was fueled by strong gains in the tech sector, positive sentiment surrounding President Donald Trump’s summit with Chinese President Xi Jinping, and renewed enthusiasm around artificial intelligence investments.
At 11:21 ET, the benchmark S&P 500 climbed 0.8% to 7,506.80 points, surpassing the 7,500 milestone for the first time in history.
The tech-heavy Nasdaq Composite surged 1% to 26,664.11 points, also setting a new all-time high.
Meanwhile, the Dow Jones Industrial Average gained 0.8% to 50,100.86 points, moving closer to a fresh intraday record.
Nvidia and AI Optimism Boost Tech Stocks
Technology shares continued leading the broader market higher after reports emerged that the United States approved several Chinese companies to purchase Nvidia’s H200 AI chips.
According to Reuters, approximately 10 Chinese firms received approval to purchase the advanced chips, although no deliveries have yet been finalized.
Nvidia CEO Jensen Huang joined Trump’s trip to China, raising hopes that negotiations between Washington and Beijing could eventually unlock broader AI chip sales into the Chinese market.
Shares of Nvidia rose more than 4% following the report.
Analysts at Deutsche Bank said optimism surrounding large technology companies remained the dominant market theme despite broader uncertainty in other sectors.
Meanwhile, analysts at Vital Knowledge noted that gains were concentrated mainly among major chipmakers, while many software and services companies lagged behind.
Markets Focus on Trump-Xi Summit
Investors closely followed developments from the Trump-Xi summit in Beijing, where both leaders signaled a more constructive tone in U.S.-China relations.
Trump described discussions with Xi as “extremely positive and constructive” during a state banquet in Beijing.
The U.S. president called Xi a “friend” and said the talks had so far been beneficial for both countries.
Xi also emphasized that China and the United States should become “partners, not rivals,” although he warned that mutual respect remains essential for stable relations.
The summit is expected to cover major issues including trade, Taiwan, artificial intelligence, and economic cooperation.
Inflation Data Fails to Derail Market Rally
Despite stronger-than-expected inflation readings earlier this week, investors largely continued buying equities.
Recent U.S. producer price data came in hotter than expected, adding to concerns that inflation pressures remain elevated.
However, some analysts suggested markets believe the recent inflation surge is closely tied to higher energy prices caused by the Iran conflict and could eventually cool if geopolitical tensions ease.
Thursday’s economic calendar also included April retail sales data.
According to the U.S. Census Bureau, retail sales rose 0.5% month-over-month, matching market expectations but slowing from March’s stronger 1.6% increase.
Separately, weekly initial jobless claims increased to 211,000, slightly above forecasts of 205,000, while continuing claims rose to 1.782 million.
Oil Prices and Iran Conflict Remain Key Risks
Global markets continue facing uncertainty linked to the ongoing Iran conflict and disruptions in the Strait of Hormuz.
The strategic waterway, located near Iran’s southern coast, handles roughly one-fifth of global oil transportation.
Oil prices remained volatile during Thursday’s session. Brent crude futures traded near $105 per barrel, significantly above pre-war levels around $70 per barrel.
The surge in energy prices has intensified concerns about persistent inflation across major economies.
Meanwhile, the U.S. Senate officially confirmed Kevin Warsh as the next chair of the Federal Reserve.
Warsh replaces outgoing Fed Chair Jerome Powell at a time when policymakers are navigating elevated inflation and uncertainty around future interest rates.
Cisco Surges After Major AI Restructuring Announcement
One of the biggest winners on Wall Street was Cisco Systems, whose shares soared more than 15%.
The networking giant unveiled a major restructuring strategy focused heavily on artificial intelligence infrastructure and next-generation networking technologies.
Cisco announced plans to cut approximately 4,000 jobs, representing about 5% of its workforce, while reallocating resources toward AI-related business segments.
The company expects to record roughly $1 billion in restructuring charges, including severance-related costs.
Cisco CEO Chuck Robbins said the overhaul is primarily aimed at shifting resources toward future growth opportunities rather than simple cost-cutting measures.
Robbins stated that the company must ensure it has “the exact resources” positioned correctly as the AI market continues evolving rapidly.
