Cisco Lifts Dow, Wall Street Hits Record Despite Iran Risks
US stocks closed higher on Thursday (May 14), led by a rally in technology and AI stocks after Cisco's performance beat expectations, while the market also digested developments from the meeting between US President Donald Trump and Chinese President Xi Jinping. The gains came despite the Middle East conflict still maintaining inflation concerns through energy prices.
The Dow Jones Industrial Average rose 370.26 points, or 0.75%, to 50,063.46, reclaiming the 50,000 level. The S&P 500 gained 0.77% to 7,501.24, while the Nasdaq Composite gained 0.88% to 26,635.22. The S&P 500 and Nasdaq both set intraday records and closed at new highs.
The main catalyst came from Cisco, which surged 13% after releasing third-quarter results and guidance that beat Wall Street estimates, while also announcing nearly 4,000 job cuts. Cisco's rise provided a significant boost to the Dow and reinforced the narrative of cost efficiency amid continued solid technology spending.
On the AI front, Nvidia rose more than 4% after Reuters reported that the US had authorized approximately 10 Chinese companies to purchase H200 chips, although no shipments had been made yet. Along with Amazon, Cisco and Nvidia have been key drivers of the Dow's recovery in recent months, despite the macro environment still being marred by inflation risks.
Iran was also discussed at the Trump-Xi summit, with a White House official stating that both sides agreed that the Strait of Hormuz should remain open to energy flows. This statement drew market attention, given that shipping disruptions in the Gulf have contributed to high energy prices and added to inflation uncertainty.
However, not all major stocks moved in the same direction. Boeing fell 3.8% after Trump said China had agreed to buy 200 Boeing aircraft, a figure that disappointed some analysts who had anticipated a larger order. The market is now monitoring further signals from the US-China talks, the direction of energy prices, and whether the momentum of the AI sector remains strong enough to withstand pressure from inflation and interest rates. (Arl)
Source: Newsmaker.id
