Wall Street Holds Record High, Tech Rally Pushes Dow Above 50,000
US stock indexes hit new records on Thursday (May 14), supported by a rally in technology stocks based on strong performance reports and outlook guidance. The S&P 500 edged higher, the Nasdaq was flat but remained near its all-time high, while the Dow Jones Industrial Average surpassed 50,000 and approached its historic high.
The index gains occurred amid a combination of factors potentially curbing risk appetite, ranging from surging energy prices due to the blockade in the Persian Gulf to expectations of a still-hawkish Federal Reserve policy stance. Additional support came from consumption data, after the "control group" component of the retail sales release rose 0.5%, reinforcing the perception that domestic demand remains solid.
At the stock level, Cisco surged 15% after posting strong performance and forecasts, while also announcing plans to cut around 4,000 jobs to boost productivity. On the AI front, Nvidia rose 2% and extended its monthly rally to around 15% after the US approved 10 Chinese companies to receive H200 chips.
Sentiment was also helped by developments in US-China communication, which was seen as remaining de-escalatory during the visit of President Donald Trump and technology CEOs to Beijing, after trade war tensions reached their peak last year. A combination of optimism in the technology sector and signs of consumer resilience were the main drivers of the index, although the market continued to weigh inflation risks from energy and their implications for interest rate direction.
Source: Newsmaker.id
