US stock indices rose on Thursday on positive sentiment about the US-China summit, and as Nvidia and Cisco shares climbed on strong artificial intelligence outlook.
At 09:54 a.m. ET, the Dow Jones Industrial Average rose 270.32 points, or 0.54%, to 49,963.52, the S&P 500 gained 28.32 points, or 0.38%, to 7,472.57 and the Nasdaq Composite gained 92.85 points, or 0.35%, to 26,495.19.
At the opening bell, the Dow Jones Industrial Average rose 150.4 points, or 0.30%, to 49,843.58. The S&P 500 rose 10.1 points, or 0.14%, to 7,454.4, while the Nasdaq Composite rose 23.1 points, or 0.09%, to 26,425.468.
Traders are hoping that China trip delivers breakthroughs in Washington’s attempts to secure a truce deal with Iran that results in the unblocking of the Strait of Hormuz.
Investors also expect for lessening commerce frictions between the two superpowers.
Chinese leader Xi Jinping’s reception of US President Donald Trump featured much of formal spectacle, but also a sharp caution regarding Taiwan.
US retail sales in April rose 0.5% from the preceding month, though the expansion included the price-increase effect of costlier fuel rates following Iran’s barring of Hormuz to most fuel vessels.
“Consumers aren’t in a recession, but they’re not powering the economy either. Higher inflation, tariffs and demographic changes have taken a toll on retail spending as a growth driver,” said David Russell, Global Head of Market Strategy at TradeStation.
“Today’s retail numbers don’t ring any alarm bells at the Fed, so they keep an upward bias on interest rates. The consumer is strong enough to rule out rate cuts.”
Key Stock Movers
Nvidia stock surged 3%, giving the chipmaker a market valuation of about $5.6 trillion, after Reuters reported that the US has cleared about 10 Chinese firms to buy its second-most powerful AI chip, the H200.
Cisco shares jumped 16.2% as the firm increased its yearly forecasts, mentioning intense demand for AI-specific assets.
Crude Oil
Crude oil prices dropped on Thursday after Iran’s local press reported around 30 ships had traversed the Strait of Hormuz in past periods.
Meanwhile, the White House, discussing US President Donald Trump’s gathering with Chinese President Xi Jinping, stated both figures concurred the Strait of Hormuz should be accessible for the clear movement of power.
Brent crude oil futures were down 60 cents, or 0.6%, to $105.03 a barrel at 1422 GMT. US West Texas Intermediate futures dropped 52 cents, or 0.5%, to $100.50.
Bullion
slipped on Thursday while stakeholders concentrated on the latest occurrences in the West Asian conflict.
At 9:42 a.m. EDT (1342 GMT), spot gold was down 0.4% at $4,668.34 per ounce. US gold futures for June delivery fell 0.7% to $4,672.70.
Among other metals, spot silver fell 3.8% to $84.62 per ounce, platinum fell 3.4% to $2,065.50, and palladium was down 3.7% at $1,443.74.