Wall Street Extends Rally on AI Momentum
U.S. stock markets climbed to fresh record highs on Thursday as investors poured money into technology shares following another wave of stronger-than-expected corporate earnings.
The benchmark S&P 500 advanced 0.8% and closed at another all-time high for the second consecutive session. The Dow Jones Industrial Average gained 370 points and moved back above the 50,000 mark for the first time since tensions linked to the Iran conflict rattled global markets. Meanwhile, the Nasdaq Composite jumped 0.9% and set a new record close.
Technology stocks continued to dominate trading activity, with investors focusing heavily on artificial intelligence-driven growth.
Cisco Leads Tech Rally After Strong Earnings
Cisco Systems delivered one of the strongest performances on Wall Street after the networking giant reported quarterly profit and revenue above analysts’ expectations.
Cisco shares soared 13.4%, marking the company’s best single-day performance in nearly 15 years.
Chief Executive Officer Chuck Robbins said the company experienced “very strong, broad-based demand” across its product lines as businesses accelerated AI-related infrastructure spending.
The company also issued a quarterly profit forecast that easily beat market expectations, further strengthening investor confidence in the AI sector.
Major technology companies have continued investing billions of dollars into artificial intelligence systems, cloud infrastructure, and data-processing capabilities. Analysts say those investments have become one of the biggest drivers behind the ongoing rally in U.S. equities throughout 2026.
AI Boom Expands Beyond Big Tech
The enthusiasm surrounding artificial intelligence extended beyond established tech giants.
Cerebras Systems raised US$5.55 billion through its initial public offering (IPO), while its stock surged 68.1% during its Nasdaq debut.
Market strategists believe the AI boom now supports a wider range of industries instead of benefiting only a handful of mega-cap companies.
According to Gargi Pal Chaudhuri, recent earnings reports confirmed that AI continues driving corporate growth across multiple sectors.
“What started with a small group of companies is now expanding into semiconductors, infrastructure, and parts of the industrial economy,” she said.
Consumer Spending Still Supports the Economy
Outside the technology sector, several consumer-focused companies also posted strong gains after releasing better-than-expected earnings.
Shares of StubHub Holdings climbed 13.7%, while Viking Holdings rose 5.5%. Yeti Holdings added 6.2%.
Those companies sell non-essential products and services, including concert tickets, cruises, and insulated drinkware. Their strong results suggested that American consumers still maintain spending activity despite inflation pressures and rising energy prices.
However, fresh economic data painted a mixed picture.
A government report showed retail sales slowed more than economists expected last month. Another report revealed that more Americans filed for unemployment benefits, signaling that layoffs may increase in certain sectors.
Even so, unemployment claims remained relatively low compared with historical averages.
Oil Prices and Global Tensions Stay in Focus
Investors also monitored geopolitical developments closely as oil prices stayed elevated following disruptions linked to the Iran conflict.
The closure of the Strait of Hormuz continued limiting crude oil shipments from the Persian Gulf, keeping pressure on global energy markets.
Brent crude oil settled at US$105.72 per barrel on Thursday, remaining far above the roughly US$70 level recorded before the conflict escalated.
Meanwhile, Asian markets delivered mixed performances. Japan’s Nikkei 225 fell 1%, while South Korea’s Kospi climbed 1.8% on gains in AI-related shares.
Chinese markets weakened during a meeting in Beijing between Chinese President Xi Jinping and U.S. President Donald Trump.
Some investors hope diplomatic talks could help stabilize energy markets and reduce tensions affecting global trade routes.
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