Dow Jones reclaims 50,000 for the first time in three months propelled by Cisco, Nvidia

Benchmark indices on Wall Street had yet another positive session with the S&P 500 and Nasdaq notching new records and the Dow Jones reclaiming an important milestone.

The Dow Jones surged 370 points on Thursday to close above the mark of 50,000 for the first time after February 12. The S&P 500 closed above the mark of 7,500 for the first time, adding another 0.8% to its tally, while the Nasdaq rose 0.9% to close above the 26,600 mark.

With this, the Dow Jones is now only 500 points away from its own record high of 50,512.

Supporting The Dow Rebound

A stronger-than-expected result from Cisco Systems, along with the job cuts announced, propelled the stock higher by 14%. The Dow was also supported by Nvidia, after the stock gained 4% on the US clearing 10 Chinese firms to buy the H200 chip, although no deliveries have yet been made.

Over the last two months, shares of Cisco Systems have rallied 47%, while Nvidia is up 30%, supporting the Dow recovery. The rebound is also aided by Amazon, shares of which are also up 28% during this period.

The Trump-Xi Meet

US President Donald Trump met Chinese President Xi Jinping in Beijing on Thursday, discussing a whole range of issues, from Iran, to Taiwan. The Chinese President told Trump that Taiwan remains the most important issue in the US-China relations and needs to be handled well for the relationship to survive.

Trump later told Fox News that China has agreed to buy 200 Boeing planes, although no official announcement has been made. Boeing CEO Kelly Ortberg was also part of Trump's delegation to China.

However, shares of Boeing fell nearly 5% on Thursday despite the news, as the street was projecting a bigger order from China. Jefferies was working with an estimate of at least 500 planes.

The Big Tech IPO

Cerebras Systems became the first pureplay AI IPO to hit Wall Street and the biggest US Tech IPO since Uber in 2019.

The company sold 30 million shares in its IPO on Wednesday, raising $5.5 billion. The stock jumped 68% in its trading debut on Thursday, giving the company a market capitalisation of $95 billion.

Resilient Retail Sales

Retail sales rose for the third straight month in April with the value of retail purchases rising 0.5% compared to the revised figure of 1.6% in March.

As these figures are not adjusted for inflation, the increase could also mean higher prices compared to higher sales volumes.

Nine out of the 13 categories analysed for this data showed an increase in April.