- The S&P 500 closed at 7,501.39, breaching the 7,500 level for the first time, while the Dow Jones Industrial Average finished at 50,063.45.
- A powerhouse performance from Nvidia (+4%) and Cisco Systems (+13.4%) fueled the broader market, as artificial intelligence optimism continues to outweigh inflation jitters.
- Investor sentiment was boosted by reports from the Trump-Xi summit in Beijing, including a massive 200-aircraft deal for Boeing and potential easing of AI chip export curbs.
U.S. stocks closed sharply higher on Thursday, with the SPX reaching a fresh all-time high above the 7,500 level while the DJIA reclaimed the psychologically important 50,000 mark.
The S&P 500 rose 0.77% to close at 7,501.39, marking another record finish for the benchmark index as investors continued pouring into artificial intelligence and semiconductor-linked stocks.
Meanwhile, the Dow Jones Industrial Average gained around 375 points, or 0.75%, to end near 50,063, while the Nasdaq Composite advanced roughly 0.88% to another record closing high.
Technology shares remained the biggest drivers of the rally despite ongoing concerns surrounding inflation, rising oil prices, and geopolitical tensions tied to the Middle East conflict.
Nvidia Leads AI-Fueled Stock Market Rally
NVIDIA (NASDAQ: NVDA) was among the market’s strongest performers after reports suggested the U.S. government approved potential sales of the company’s H200 AI chips to several Chinese firms.
NVDA shares climbed 4.39% on Thursday to close at $235.74, extending the company’s powerful 2026 rally as investors continue betting heavily on long-term AI infrastructure demand. The latest gains also pushed CEO Jensen Huang further up the global wealth rankings as Nvidia maintained its position as the world’s most valuable company.
The broader semiconductor sector also moved higher, helping lift market sentiment after weeks of volatility tied to inflation fears and rising energy costs.
Dow Jones Gains as Investors Monitor Trump-Xi Summit
Investor sentiment also improved as markets closely followed meetings between President Donald Trump and Chinese President Xi Jinping in Beijing. Discussions reportedly focused on trade, tariffs, semiconductor supply chains, Taiwan, and tensions surrounding Iran and the Strait of Hormuz.
Trump attended the summit alongside several high-profile U.S. business leaders, including Nvidia CEO Jensen Huang and Elon Musk. According to reports, both sides agreed that the Strait of Hormuz should remain open amid ongoing disruptions linked to the Iran conflict, which has continued influencing global oil prices and shipping routes.
Trump also stated that China had agreed to purchase 200 aircraft from Boeing, although Boeing shares finished lower on the day.
AI Optimism Continues to Offset Inflation Concerns
Thursday’s rally came despite growing concerns that inflation pressures could remain elevated for longer than expected. Recent economic data showed import prices recorded their biggest increase since 2022, driven largely by higher energy costs following tensions in the Middle East.
Federal Reserve officials also continued warning about inflation risks. Kansas City Fed President Jeffrey Schmid described inflation as the most pressing challenge facing the U.S. economy, although he noted that overall economic conditions remain resilient. Even with those concerns, investors continued rotating into AI-related companies and growth stocks, reinforcing optimism that artificial intelligence spending will remain one of Wall Street’s strongest long-term themes.
Cisco Earnings Add to Tech Sector Momentum
Cisco Systems (NASDAQ: CSCO) also contributed to Thursday’s gains after the company delivered stronger-than-expected quarterly earnings and raised its annual revenue outlook. Cisco shares surged more than 13%, helping support broader technology sentiment as investors rewarded companies tied to AI networking and infrastructure demand.
The S&P 500 reached a new all-time high as investors continued buying AI and semiconductor stocks led by Nvidia and other technology companies.
The U.S. government has reportedly approved the sale of H200 chips to approximately 10 Chinese firms, though actual shipments are currently pending further security procedures and transit requirements.
