US sharemarkets rose on Thursday, with the Dow Jones Industrial Average reclaiming the 50,000 level as strong earnings from Cisco Systems and gains in major technology stocks lifted investor sentiment.
The Dow Jones Industrial Average climbed 370.26 points, or 0.75%, to close at 50,063.46. The S&P 500 rose 0.77% to 7,501.24, while the Nasdaq Composite gained 0.88% to finish at 26,635.22. Both the S&P 500 and Nasdaq reached fresh intraday and closing record highs during the session.
Technology stocks again led gains, with Cisco surging 13% after reporting stronger-than-expected third-quarter earnings and guidance while also announcing plans to cut almost 4,000 jobs.
Nvidia also rose more than 4% after Reuters reported the US had cleared around 10 Chinese companies to purchase Nvidia’s H200 artificial intelligence chips, although deliveries have not yet commenced.
Amazon also contributed to gains in the Dow, with investors continuing to favour major technology and artificial intelligence-linked companies despite broader macroeconomic and geopolitical risks.
The latest gains extended a strong run for major technology stocks. Cisco has surged 47% over the past two months, while Amazon and Nvidia have risen 28% and 30% respectively.
Investor attention also remained on developments surrounding the Iran war after President Donald Trump and Chinese President Xi Jinping reportedly agreed during talks that the Strait of Hormuz must remain open.
Australian Market Outlook
Australian shares are expected to open higher following another strong session on Wall Street led by gains in technology stocks and positive earnings momentum.
S&P/ASX 200 futures are up 49 points, or 0.6%, to 8,720.
Local technology stocks may benefit from continued strength across semiconductor and artificial intelligence-linked companies overnight, while broader sentiment is also likely to be supported by improving risk appetite globally.
