Artificial intelligence trading continues to drive U.S. stock markets to new records, with robust earnings from Cisco and a landmark IPO from an AI chip manufacturer further lifting market sentiment.
The S&P 500 rose 0.8%, surpassing the 7500 point level, while the Nasdaq 100 index gained 0.7%.
Cisco's stock reached a new high after surging more than 10%, following the company's revenue forecast exceeding expectations and its plan to cut several thousand jobs.
This also propelled the Dow Jones Industrial Average up by 0.8%, bringing it within striking distance of its first closing record high since the onset of the Iran war.
Risk appetite was further bolstered by a 68% surge on the first day of trading for Cerebras Systems Inc., which raised $55.5 billion through the year's largest IPO, highlighting strong investor interest in AI data centers and the chips that power them.
NVIDIA's stock closed up 4.4%, marking its seventh consecutive day of gains.
"The chip sector is entirely momentum-driven at the moment, and for many investors, this means going with the flow," said Todd Sohn, Chief ETF Strategist at Strategas Securities.
"It is 'not yet' time to sell semiconductor stocks," stated Ajay Rajadhyaksha, Global Head of Research at Barclays. In a research note, he pointed out that "this is not 2000," citing actual revenues, order backlogs indicating contractual demand, and AI infrastructure set for multi-year construction.
U.S. retail sales increased for the third consecutive month in April, suggesting consumer resilience despite a significant rise in gasoline prices.
At the close, the S&P 500 was up 0.8% at 7501.24 points; the Dow Jones Industrial Average rose 0.8% to 50063.46 points; the Nasdaq Composite Index gained 0.9% to 26635.22 points; the Nasdaq 100 Index advanced 0.7% to 29580.3 points; and the Russell 2000 Index increased 0.7% to 2863.086 points.
Comments