U.S. stock indexes climbed to fresh highs Thursday as strong corporate earnings and continued enthusiasm around artificial intelligence investments pushed the Dow Jones Industrial Average back above the 50,000 level for the first time in months.
The rally was led by networking giant Cisco Systems, whose shares surged after the company posted stronger-than-expected quarterly results and raised its outlook tied to AI infrastructure demand. The gains helped lift the broader market despite persistent concerns over inflation, elevated oil prices and geopolitical tensions linked to the Iran conflict.
The S&P 500 rose 0.8% to a record 7,501.24, while the Nasdaq Composite gained 0.9% to another all-time high. The Dow advanced 370 points, or 0.7%, closing at 50,063.46, according to market data.
Cisco earnings strengthen AI-driven market momentum
Cisco emerged as the biggest contributor to the Dow’s advance after reporting quarterly profit and revenue above analyst expectations. The company’s stock jumped more than 13%, marking its strongest single-day gain in nearly 15 years.
Company executives cited “strong, broad-based demand” for networking and AI infrastructure products as major drivers of performance. Cisco also issued quarterly guidance that exceeded Wall Street expectations, reinforcing investor confidence in ongoing enterprise AI spending.
Market strategists said the latest earnings season continues to show that artificial intelligence remains the dominant force behind equity market gains in 2026.
Gargi Pal Chaudhuri, chief investment and portfolio strategist at BlackRock, said earnings growth linked to AI is broadening beyond semiconductor firms into infrastructure and industrial sectors.
AI investments continue driving equity gains
Investor enthusiasm around AI-related businesses extended beyond Cisco.
AI chipmaker Cerebras Systems raised approximately $5.55 billion in its public market debut, with shares surging more than 68% during their first trading session on Nasdaq.
The technology sector has remained central to Wall Street’s rally this year, with companies tied to cloud computing, semiconductors and AI infrastructure continuing to outperform broader market benchmarks.
A day earlier, stocks including Nvidia and other semiconductor firms also helped push indexes to record levels despite inflation pressures and rising Treasury yields.
Economic concerns remain in focus
Despite the strong market performance, investors continued monitoring signs of pressure on the broader U.S. economy.
Government data released Thursday showed retail sales growth slowing more than economists expected, although spending excluding gasoline and automobile purchases held up better than anticipated. Separate labor market figures showed a modest increase in unemployment benefit claims, though levels remain historically low.
Meanwhile, oil prices stayed elevated as the conflict involving Iran continued to disrupt global energy markets and shipping activity near the Strait of Hormuz.
Brent crude settled above $105 per barrel Thursday, remaining sharply higher than levels seen before the conflict escalated earlier this year. Analysts warned sustained energy inflation could complicate the outlook for interest rates and consumer spending.
Global markets mixed amid geopolitical tensions
International markets delivered mixed performances as investors weighed geopolitical developments alongside corporate earnings.
Japan’s Nikkei 225 fell 1%, while South Korea’s Kospi climbed 1.8% to a record high, supported by gains in AI-linked technology stocks. Chinese markets weakened as investors monitored meetings between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing.
Some investors are hoping diplomatic discussions between Washington and Beijing could help stabilize energy markets by encouraging renewed access through the Strait of Hormuz, a key global oil shipping route.
