Major United States benchmark averages ended higher on Thursday (Friday AEST), driven by a rally in technology shares as investors digested broadly solid economic data and closely monitored developments from high-level talks between the U.S. and China in Beijing.
All three major U.S. indexes advanced, with the S&P 500 and Nasdaq Composite posting fresh record closing highs. The Dow Jones Industrial Average also climbed strongly, finishing just 0.3% below its record closing peak reached on 10 February.
The Dow rose 370.3 points, or 0.8%, to 50,063.5, while the S&P 500 gained 57.0 points, or 0.8%, to close at 7,501.2. The Nasdaq Composite added 232.9 points, or 0.9%, to finish at 26,635.2.
Investor sentiment was supported by optimism surrounding discussions between U.S. President Donald Trump and Chinese President Xi Jinping.
The summit focused on a broad range of geopolitical and economic issues, including trade relations, U.S. arms sales to Taiwan and the reopening of the Strait of Hormuz.
The Strait of Hormuz, a critical global oil shipping route through which much of Asia’s crude supply passes, has effectively remained shut during the U.S.-Israeli conflict involving Iran.
Iran was also a major point of discussion during the Trump-Xi summit, with CNBC reporting, citing a White House official, that both leaders agreed the Strait of Hormuz must remain open.
Among individual companies, Cisco shares surged 13.4% after the networking and software company delivered third-quarter results and guidance that exceeded Wall Street expectations. The company also announced plans to cut nearly 4,000 jobs.
Nvidia jumped 4.4% after the U.S. government reportedly cleared sales of the company’s H200 chips to Chinese firms, easing concerns about export restrictions impacting future growth.
U.S.-listed shares of tech infrastructure company Nebius Group rose 6.7% after Northland Capital increased its target price on the stock by 15.3% to US$248 per share.
Chipmaker Cerebras soared 68.2% in its debut on U.S. markets, marking one of the strongest technology listings of the year.
On the economic front, retail sales data was up 0.5% on the previous month, largely in line with market expectations, although the figures were boosted by rising petrol prices linked to the conflict involving Iran.
Higher fuel costs also contributed to the largest increase in import prices since October 2022.
Kansas City Federal Reserve President Jeffrey Schmid described inflation as the most “pressing risk” facing the U.S. economy, while characterising economic conditions as “resilient”.
On the bond markets, U.S. Treasury yields moved higher, with the 10-year yield rising 0.4% to 4.483%, while the two-year yield increased 1% to 4.015%.
