US stock market jumps sharply today with Dow hitting 50,000 for first time since Iran war

The U.S. stock market surged toward new records on Thursday, bolstered by robust corporate earnings that exceeded analyst expectations, particularly from tech giant Cisco Systems.

The S&P 500 advanced 0.9%, building on its previous all-time high, while the Dow Jones Industrial Average climbed 386 points, or 0.8%, positioning it to close above the 50,000 mark for the first time since the war with Iran commenced.

The Nasdaq composite also saw a 1% rise, extending its own record by late morning Eastern time.

Cisco Systems played a significant role in the market’s ascent, with its shares jumping 15.5% in what could be its strongest single-day performance in nearly 15 years.

The tech firm reported better-than-anticipated profit and revenue for its latest quarter, with CEO Chuck Robbins noting “very strong, broad-based demand for our products.”

This performance, coupled with a current-quarter profit forecast that easily surpassed analyst predictions, underscored the ongoing impact of artificial intelligence investments.

Indeed, the voracious demand for AI technology and the substantial profits it generates have been primary drivers behind the U.S. stock market‘s record-setting trajectory this year.

This trend was further highlighted by Cerebras Systems, an AI processor company, which successfully raised $5.55 billion through its initial public offering, with shares slated to begin trading on the Nasdaq later in the day.

Gargi Pal Chaudhuri, chief investment and portfolio strategist at BlackRock, observed that corporate earnings this season have “reinforced that this is still an AI-led market, but one where the impact is broadening quickly.”

She added, “What started with a handful of companies is now driving earnings growth across semiconductors, infrastructure, and even parts of the industrial economy.”

Beyond the AI sector, other companies also posted strong results, including StubHub Holdings, up 18.2%, Viking Holdings, which rose 7%, and Yeti Holdings, gaining 4.7%. These companies, which sell non-essential items like concert tickets, river cruises, and insulated water bottles, suggest a degree of consumer willingness to spend, even as surveys indicate widespread economic discouragement among U.S. households.

However, questions persist regarding the sustainability of U.S. consumer spending, particularly given rising oil prices and inflation exacerbated by the Iran war.

A report released Thursday indicated that overall retail spending in the U.S. last month was lower than economists had forecast, though the deceleration was less severe when excluding gasoline and automobile sales.

Separately, an increase in U.S. workers filing for unemployment benefits last week hinted at potential layoffs, although the overall number remains historically low.

In the bond market, Treasury yields fluctuated but largely held steady, with the yield on the 10-year Treasury slightly dipping to 4.45% from 4.46% late Wednesday.

International stock markets presented a mixed picture; European indexes rose, while Asia saw varied results. Japan’s Nikkei 225 fell 1%, but South Korea’s Kospi jumped 1.8% to a new record, largely due to gains in AI-related stocks.

Meanwhile, stocks were nearly flat in Hong Kong and down 1.5% in Shanghai, coinciding with a meeting between Chinese leader Xi Jinping and Donald Trump in Beijing.

Some investors are hopeful that Donald Trump could encourage Xi to leverage China’s close economic ties with Iran to facilitate the reopening of the Strait of Hormuz.

The Strait’s closure due to the conflict has led to a backlog of oil tankers in the Persian Gulf, driving up crude prices globally.

The price for a barrel of Brent crude oil, the international standard, fell 0.6% to $104.97 Thursday, but it remains well above its price of roughly $70 from before the war.