Wall Street Hits New Highs as Tech Stocks Rally and U.S.-China Optimism Grows
U.S. stock markets moved sharply higher on Thursday, supported by strong gains in technology companies and growing investor optimism surrounding President Donald Trump’s visit to China.
The benchmark S&P 500 climbed above the 7,500 mark for the first time in history, while the Nasdaq Composite also reached a fresh record high. Meanwhile, the Dow Jones Industrial Average surged past 50,000 points, marking its first record close since February.
Investor sentiment improved after reports suggested the United States had approved several Chinese firms to potentially purchase Nvidia’s H200 AI chips. Although deliveries have not yet begun, markets viewed the development as a possible sign of easing tensions in the technology trade between Washington and Beijing.
Shares of chipmaker Nvidia jumped more than 4% after reports revealed CEO Jensen Huang joined Trump during the China visit, fueling speculation about potential agreements related to artificial intelligence and semiconductor exports.
Technology stocks remained the main driver of the rally, although some analysts noted that gains were concentrated among mega-cap companies rather than across the broader market. Equal-weight indexes showed weaker momentum, suggesting not all sectors participated equally in the advance.
Investors also largely ignored stronger-than-expected U.S. inflation data released this week. Market participants instead focused on hopes that geopolitical tensions involving Iran could eventually ease, potentially reducing energy-driven inflation pressures.
Fresh economic data showed U.S. retail sales increased by 0.5% in April, matching market expectations but slowing compared to the previous month’s stronger growth. At the same time, weekly jobless claims rose slightly above forecasts, signaling a modest softening in labor market conditions.
During meetings in Beijing, Trump described discussions with Chinese President Xi Jinping as “positive and constructive,” while Xi emphasized the importance of cooperation and mutual respect between the two countries. Investors are closely monitoring the summit for any announcements involving trade, artificial intelligence, or major corporate deals.
U.S. Treasury Secretary Scott Bessent also hinted that China could announce significant aircraft purchases from Boeing during the visit. However, Boeing shares moved lower despite the speculation.
Oil prices remained volatile as markets continued to monitor tensions around the Strait of Hormuz, a critical global oil shipping route. Brent crude traded near $105 per barrel, significantly higher than pre-conflict levels earlier this year, keeping inflation concerns alive across global markets.
In corporate news, Cisco Systems surged more than 14% after unveiling a major restructuring plan focused on artificial intelligence. The company announced plans to cut around 4,000 jobs while redirecting resources toward AI-related operations and infrastructure.
Cisco executives said the restructuring is designed to better position the company for future technological shifts rather than simply reduce costs, as businesses increasingly invest in AI networking and data center capabilities.