Cisco Leads Wall Street Higher as AI Stocks Surge

U.S. stocks climbed Thursday as strong earnings from Cisco Systems and continued enthusiasm around artificial intelligence pushed Wall Street closer to fresh records.

The S&P 500 gained 0.5% in morning trading, extending its all-time high. Meanwhile, the Dow Jones Industrial Average rose 254 points, putting the index close to reclaiming the 50,000 level for the first time since the Iran war began.

The Nasdaq composite also advanced 0.5%, setting another record as investors continued pouring money into AI-related technology companies.

Cisco shares jump on strong AI demand

Cisco was one of the biggest market winners of the day.

Shares of the networking giant surged 14.6% after the company reported quarterly profit and revenue that exceeded analyst expectations.

CEO Chuck Robbins said Cisco experienced “very strong, broad-based demand” for its products, especially as companies continue investing heavily in artificial intelligence infrastructure.

The company also issued an optimistic profit forecast for the current quarter, which further boosted investor confidence.

AI boom continues driving stock market gains

Artificial intelligence remains the dominant force behind Wall Street’s record-setting rally in 2026.

According to BlackRock strategist Gargi Pal Chaudhuri, the AI-driven earnings surge is now spreading beyond semiconductor companies into infrastructure and industrial sectors.

Areas benefiting from the AI expansion include:

• Semiconductor manufacturers
• Cloud infrastructure providers
• Networking equipment companies
• Industrial technology firms
• Data center operators

The growing demand for AI computing power has helped sustain investor optimism despite rising inflation and geopolitical uncertainty.

Cerebras Systems raises billions in IPO

Investor appetite for AI investments was also highlighted by Cerebras Systems, which raised $5.55 billion in its initial public offering.

The company’s shares were expected to begin trading on the Nasdaq later Thursday.

The massive fundraising round reflects continued market confidence in AI-focused businesses and next-generation computing technologies.

Consumer-focused companies also post strong earnings

Outside the technology sector, several companies tied to discretionary consumer spending also delivered strong results.

Stocks that rallied after earnings included:

• StubHub Holdings: up 19.3%
• Viking Holdings: up 10%

Strong performances from these companies suggest consumers are still willing to spend on entertainment and travel despite economic pressures from inflation and rising fuel costs.

Retail spending remains under pressure

A separate economic report released Thursday showed U.S. retail spending slowed in April.

However, after removing gasoline and automobile sales, the slowdown was not as severe as economists had expected.

Investors continue watching consumer spending closely because households are facing higher costs linked to:

• Rising gasoline prices
• Inflation
• Elevated energy costs
• Economic uncertainty from the Iran conflict

Treasury yields remain relatively stable

The bond market remained mostly steady after the latest economic data.

The yield on the 10-year Treasury slipped slightly to 4.45% from 4.46% late Wednesday.

Higher Treasury yields can pressure stock valuations because they increase borrowing costs for businesses and consumers.

Global markets mixed as Trump meets Xi Jinping

International stock markets showed mixed performance Thursday as Donald Trump met with Xi Jinping in Beijing.

Market performance abroad included:

• Japan’s Nikkei 225: down 1%
• South Korea’s Kospi: up 1.8% to another record
• Shanghai Composite: down 1.5%
• Hong Kong markets: nearly flat

Investors are closely monitoring the summit for any signs that China could pressure Iran to reopen the Strait of Hormuz, whose closure continues disrupting global oil shipments.

Oil prices remain elevated

Oil prices eased slightly Thursday but remained far above pre-war levels.

Brent crude dipped 0.1% to $105.54 per barrel after surging from roughly $70 before the Iran conflict began.

High energy prices continue fueling inflation concerns worldwide and remain one of the biggest risks facing global markets.