The S&P 500 added 0.5% to its all-time high set the day before. The Dow Jones Industrial Average climbed 254 points, or 0.5%, and is close to finishing a day above the 50,000 level for the first time since the war with Iran began. The Nasdaq composite was 0.5% higher and adding to its own record, as of 10:30 a.m. Eastern time.
Cisco helped lead the market after jumping 14.6% in what could be its best day in nearly 15 years. The tech giant reported better profit and revenue for the latest quarter than analysts expected, and CEO Chuck Robbins said it saw “very strong, broad-based demand for our products.”
Big Tech behemoths in particular are pouring cash into artificial-intelligence technology, and Cisco gave a forecast for profit in the current quarter that easily topped analysts' expectations.
Such voracious demand for AI, and the big profits it's producing, have been major reasons the U.S. stock market has set records throughout this year. Cerebras Systems, an AI processor company, raised $5.55 billion after selling its stock in an initial public offering, and its shares are set to begin trading on the Nasdaq later in the day.
Corporate earnings reported so far this season have “reinforced that this is still an AI-led market, but one where the impact is broadening quickly,” according to Gargi Pal Chaudhuri, chief investment and portfolio strategist at BlackRock.
“What started with a handful of companies is now driving earnings growth across semiconductors, infrastructure, and even parts of the industrial economy,” she said.
