US stocks surge toward fresh records as Cisco jumps on blowout earnings
AP News • • business
Key Points:
- The U.S. stock market is reaching new record highs, driven by stronger-than-expected corporate profits, with the S&P 500 and Nasdaq both up 0.5%, and the Dow Jones nearing 50,000 points.
- Cisco Systems surged 14.6% after reporting better quarterly profit and revenue, attributing growth to strong demand for its products, particularly in artificial intelligence (AI) technology.
- AI continues to be a major driver of market gains, with companies across semiconductors, infrastructure, and industrial sectors showing earnings growth linked to AI investments.
- Despite concerns over consumer spending due to inflation and geopolitical tensions, some discretionary spending companies like StubHub and Viking Holdings reported robust profits, suggesting continued consumer willingness to spend.
- International markets showed mixed results, with gains in South Korea's Kospi driven by AI stocks, while Chinese and Japanese markets declined amid geopolitical developments, including U.S.-China talks and ongoing tensions in the Persian Gulf affecting oil prices.