U.S. stocks powered deeper into record territory Thursday afternoon, with the Dow Jones Industrial Average crossing the 50,000 mark for the first time ever, as investors piled into technology and industrial shares following a blockbuster Cisco Systems earnings report and major commercial announcements tied to President Donald Trump’s Beijing summit with Chinese President Xi Jinping.
The rally accelerated after Cisco reported surging artificial-intelligence infrastructure demand and Trump announced China had agreed to purchase 200 Boeing aircraft alongside expanded purchases of U.S. soybeans and energy products during the high-profile state visit.
The S&P 500 climbed 0.74% to 7,499.63, while the Dow Jones Industrial Average rose 0.73% to 50,055.30. The Nasdaq Composite gained 0.88% to 26,633.44, with all three indexes setting fresh intraday highs. The Russell 2000 added 0.46%.
Wall Street’s rally came despite softer U.S. economic data that increasingly reinforced expectations the Federal Reserve under incoming Chair Kevin Warsh could begin cutting interest rates as early as June.
The Commerce Department reported April retail sales rose just 0.5%, sharply below March’s revised 1.6% surge, while the Labor Department said weekly jobless claims climbed to a five-week high of 211,000.
Rather than hurting markets, traders interpreted the slowdown as supportive for monetary easing.
“The market is now pricing a materially more dovish Fed path under Warsh,” said one senior New York-based macro strategist. “Investors see slower growth but not recession — which is the sweet spot for risk assets.”
Cisco Ignites AI Trade
The session’s biggest catalyst came from Cisco Systems, whose shares surged more than 14% after the networking giant delivered stronger-than-expected quarterly results and sharply raised its AI infrastructure outlook.
Cisco reported fiscal third-quarter revenue of $15.8 billion, up 12% year over year, while adjusted earnings reached $1.06 per share — both ahead of Wall Street expectations.
More importantly for investors, the company disclosed $5.3 billion in AI infrastructure orders from hyperscale cloud customers and raised its full-year AI order forecast to $9 billion from $5 billion previously.
Chief Executive Chuck Robbins told analysts the industry has entered a “networking supercycle” fueled by exploding AI computing demand.
The company simultaneously announced roughly 4,000 job cuts as it shifts investment toward AI networking, optical systems, cybersecurity, and custom silicon.
Cisco’s report lifted the broader AI infrastructure complex. Arista Networks jumped roughly 5%, while Juniper Networks, Ciena, Broadcom, NVIDIA, and optical networking suppliers also advanced sharply.
NVIDIA rose 2.29% as Chief Executive Jensen Huang, traveling with Trump’s delegation in Beijing, held meetings with Chinese officials regarding semiconductor policy and AI cooperation.
Trump’s Beijing Visit Boosts Industrials
Industrial and aerospace shares also gained momentum following major commercial announcements tied to Trump’s summit in Beijing.
Boeing climbed after Trump disclosed China agreed to purchase 200 Boeing 737 aircraft — the country’s largest Boeing order since 2017.
The deal marks a significant thaw in U.S.-China commercial aviation ties following years of geopolitical friction and regulatory disputes.
“Large aircraft orders carry enormous symbolic and economic value,” said one aviation analyst. “This is not just about planes — it signals reopening commercial channels between Washington and Beijing.”
GE Aerospace gained on expectations of higher engine demand tied to the Boeing deal, while industrial names including Caterpillar also recovered.
Technology executives accompanying Trump’s delegation continued to draw attention from investors. Apple rose 1.38% as Chief Executive Tim Cook participated in meetings, while Tesla advanced 2.73% with Elon Musk joining the delegation.
Financial firms tied to the trip also traded modestly higher, including Goldman Sachs, Citigroup, and BlackRock.
Markets Look Past Global Risks
Despite continued geopolitical instability, markets largely shrugged off escalating global tensions.
Crude oil prices eased slightly, with West Texas Intermediate trading near $100.58 per barrel and Brent crude remaining above $105, even as the U.S.-Israeli conflict with Iran continued and Cuba announced it had fully exhausted its diesel and fuel oil reserves overnight.
Gold prices slipped 0.45% as investors rotated toward equities and risk assets.
The CBOE Volatility Index (VIX) — Wall Street’s preferred fear gauge — remained relatively subdued near 18, suggesting options markets see limited immediate stress despite mounting international flashpoints.
Bitcoin continued its rebound, climbing above $80,800.
Focus Turns to Consumers and the Fed
Attention now shifts toward next week’s earnings reports from Walmart, Target, and Home Depot, which investors increasingly view as critical tests of consumer resilience amid slowing growth and elevated prices.
Markets are also closely watching the Federal Reserve transition as Kevin Warsh formally assumes the Fed chairmanship Friday ahead of the central bank’s June 16-17 meeting.
Bond yields drifted lower Thursday as traders increased bets on rate cuts later this summer.
For now, Wall Street’s message remains clear: investors believe AI spending, improving U.S.-China commercial relations, and the prospect of lower interest rates continue to outweigh geopolitical risks and slowing economic momentum.
JBizNews Desk
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