Cisco leads Wall Street toward more records and the Dow back to 50,000

NEW YORK (AP) — The U.S. banal marketplace is rising toward much records Thursday aft Cisco Systems joined the parade of U.S. companies reporting fatter profits for the commencement of 2026 than analysts expected.

The S&P 500 added 0.8% to its all-time precocious acceptable the time before. The Dow Jones Industrial Average climbed 379 points, oregon 0.8%, and is connected way to decorativeness the time supra 50,000 for the archetypal clip since the warfare with Iran began. The Nasdaq composite was 1% higher and adding to its ain record, arsenic of 1:53 p.m. Eastern time.

Cisco helped pb the marketplace aft jumping 13% successful what could beryllium its champion time successful astir 15 years. The tech elephantine reported amended nett and gross for the latest 4th than analysts expected, and CEO Chuck Robbins said it saw “very strong, broad-based request for our products.”

Big Tech behemoths successful peculiar are pouring currency into artificial-intelligence technology, and Cisco gave a forecast for nett successful the existent 4th that easy topped analysts' expectations.

Such voracious request for AI, and the large profits it's producing, person been large reasons the U.S. banal marketplace has acceptable records passim this year. Cerebras Systems, an AI processor company, raised $5.55 cardinal aft selling its banal successful an archetypal nationalist offering, and its shares surged 71% to astir $317 soon aft it began trading connected Nasdaq Thursday.

Corporate net reported truthful acold this play person “reinforced that this is inactive an AI-led market, but 1 wherever the interaction is broadening quickly,” according to Gargi Pal Chaudhuri, main concern and portfolio strategist astatine BlackRock.

“What started with a fistful of companies is present driving net maturation crossed semiconductors, infrastructure, and adjacent parts of the concern economy,” she said.

Outside of AI, different stocks rallying aft delivering better-than-expected nett reports included StubHub Holdings, up 18.5%, Viking Holdings, up 8.3% and Yeti Holdings, up 5.9%.

All 3 companies merchantability products that aren’t day-to-day essentials, specified arsenic performance tickets, stream cruises and insulated h2o bottles. Strong results from them could beryllium an indicator that customers are inactive consenting to walk adjacent though U.S. consumers person been telling surveys they're feeling discouraged astir the economy.

Whether U.S. households volition support spending and enactment the system is simply a large question due to the fact that unit has been rising connected them owed to precocious lipid prices and ostentation created by the Iran war. A study released Thursday said that shoppers wide spent little astatine U.S. retailers past period than economists expected. But the deceleration aft factoring retired gasoline and automobile income wasn’t rather arsenic atrocious arsenic economists thought it would be.

A abstracted report, meanwhile, said much U.S. workers filed for unemployment benefits past week, which could beryllium an denotation of much layoffs. The number, though, remains comparatively debased compared with history.

Treasury yields flitted up and down successful the enslaved marketplace instantly aft the reports, but they mostly remained steady. The output connected the 10-year Treasury edged down to 4.45% from 4.46% precocious Wednesday.

In banal markets abroad, indexes roseate successful Europe pursuing a mixed decorativeness successful Asia. Japan's Nikkei 225 fell 1%, portion South Korea's Kospi jumped 1.8% to different grounds acknowledgment to gains for AI-related stocks.

Stocks were astir level successful Hong Kong and down 1.5% successful Shanghai arsenic Chinese person Xi Jinping met with U.S. President Donald Trump successful Beijing.

Some investors anticipation Trump could promote Xi to usage China’s adjacent economical ties with Iran to get it to reopen the Strait of Hormuz. The strait’s closure due to the fact that of the warfare has kept lipid tankers pent up successful the Persian Gulf alternatively of delivering crude to customers worldwide, which has driven up crude prices.

The terms for a tube of Brent crude oil, the planetary standard, roseate 0.1% to $105.72 Thursday, and it remains good supra its terms of astir $70 from earlier the war.

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AP Business Writers Chan Ho-him and Matt Ott contributed to this report.

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