Wall Street Surges to Fresh Records as Cisco Sparks AI-Fueled Rally and Dow Nears 50,000

BY EMMANUEL OGBONNA

U.S. stocks climbed to fresh record territory on Thursday as strong corporate earnings and continued enthusiasm surrounding artificial intelligence pushed major indexes higher, with technology giant leading the latest rally on Wall Street.

The surge extended a powerful run that has defined much of the market in 2026, despite mounting geopolitical uncertainty tied to the conflict involving and ongoing concerns about inflation and global energy prices.

By late morning trading in New York, the rose 0.9%, surpassing the all-time high it had set just one day earlier. The gained roughly 386 points, or 0.8%, placing the blue-chip index on track to close above the 50,000 mark for the first time since the outbreak of the Iran conflict. Meanwhile, the climbed another 1%, adding to its own record highs as technology stocks continued to dominate investor attention.

Cisco emerged as one of the market’s strongest performers after its shares soared 15.5%, potentially marking the company’s best single trading session in nearly 15 years.

The networking and communications technology company reported quarterly profits and revenue that exceeded Wall Street expectations, reinforcing optimism about continued corporate spending on artificial intelligence infrastructure.

Cisco CEO said the company experienced “very strong, broad-based demand” for its products as businesses accelerate investments tied to AI expansion.

The company also issued a stronger-than-expected profit forecast for the current quarter, fueling further confidence among investors that the AI boom remains far from slowing down.

Major technology companies across the United States have continued pouring billions of dollars into artificial intelligence development, data centers, semiconductor infrastructure and cloud computing systems. That wave of investment has become one of the dominant forces driving stock market gains throughout the year.

The latest enthusiasm around AI also extended to , which raised approximately $5.55 billion in a highly anticipated initial public offering. Shares of the AI processor company were expected to begin trading on the Nasdaq later Thursday, adding further momentum to the sector.

Market strategists said earnings reports released this season continue to demonstrate how deeply AI-related growth is spreading throughout the broader economy.

Gargi Pal Chaudhuri, chief investment and portfolio strategist at , said the earnings season has reinforced the idea that artificial intelligence remains the central driver of the current market rally, while also expanding into new industries.

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

The rally was not limited to technology stocks.

Several consumer-focused companies also posted strong gains after reporting profits that topped expectations, suggesting American consumers may still be willing to spend despite economic pressures tied to inflation and rising fuel prices.

jumped 18.2% after releasing stronger-than-expected financial results, while gained 7%. rose 4.7% after also beating analyst forecasts.

The strong performances from companies tied to travel, entertainment and discretionary purchases offered investors reassurance that consumers are continuing to spend on non-essential items such as concert tickets, vacations and premium retail products.

Still, concerns remain over the broader health of the American economy.

Higher oil prices caused by instability around the and ongoing inflation pressures linked to the Iran conflict have weighed on consumer confidence in recent months.

New economic data released Thursday showed U.S. retail sales weakened last month more than economists expected, though the slowdown appeared less severe once automobile and gasoline purchases were excluded from the calculations.

Another report indicated a slight increase in the number of Americans filing for unemployment benefits, potentially signaling a gradual rise in layoffs. However, economists noted that jobless claims remain historically low overall, suggesting the labor market is still relatively stable.

The mixed economic reports caused only modest movement in the bond market.

The yield on the benchmark 10-year U.S. Treasury note edged slightly lower to 4.45% from 4.46% late Wednesday as investors continued balancing optimism about corporate earnings against concerns about economic growth and inflation.

Global markets also reflected the cautious optimism seen on Wall Street.

European indexes moved higher following a mixed session across Asia. Japan’s fell 1%, while South Korea’s jumped 1.8% to another record high amid gains in AI-related shares.

Markets in were mostly flat, while indexes in mainland China declined. The fell 1.5% as investors monitored developments from meetings between Trump and Chinese President Xi Jinping in Beijing.

Some traders and analysts hope Washington may persuade Beijing to use its economic leverage with Iran to help stabilize conditions around the Strait of Hormuz and reopen disrupted shipping routes.

The waterway remains one of the world’s most critical energy corridors, and ongoing restrictions there have trapped oil tankers in the Persian Gulf, disrupting global crude supplies and pushing prices sharply higher.

Although oil prices eased slightly Thursday, they remained significantly elevated compared with levels seen before the conflict intensified.

The price of Brent crude, the international benchmark for oil, slipped 0.6% to $104.97 per barrel. Even with the decline, prices remain dramatically above the roughly $70 level recorded before fighting in the region escalated.

Despite those geopolitical risks, investors on Wall Street continued focusing heavily on strong corporate profits, AI-driven growth and expectations that large technology companies will keep delivering powerful earnings momentum through the remainder of the year.

The combination of resilient consumer spending, booming demand for artificial intelligence infrastructure and optimism surrounding corporate America has helped propel U.S. markets to repeated record highs, even as uncertainty surrounding global conflicts and energy supplies continues to loom over the broader economy.