Wall Street extends gains led by Nvidia as investors monitor US-China talks and economic data

The S&P 500 and Nasdaq indexes reached fresh record highs on Thursday, supported by gains in Nvidia shares, while investors monitored economic data and developments from the high-stakes summit between the United States and China.

Nvidia shares rose about 3%, lifting the company’s market value to roughly $5.6 trillion, after Reuters reported, citing sources, that the United States had allowed around 10 Chinese companies to purchase the company’s H200 AI chip, its second most powerful processor.

At the same time, Cisco shares surged about 14.7% to a record high after the networking equipment company announced plans to cut nearly 4,000 jobs as part of a restructuring plan, while also raising its annual revenue forecast due to stronger demand from hyperscale computing companies.

The latest gains in technology stocks, particularly semiconductor companies, pushed US equities to new record levels despite ongoing concerns surrounding the Middle East war and rising inflation driven by higher oil prices.

Data showed US retail sales rose 0.5% in April, in line with expectations, although part of the increase was likely driven by higher prices as the Iran war pushed up energy and essential goods costs.

David Russell, head of global market strategy at TradeStation, said the US consumer is not in recession but is also no longer driving economic growth, noting that elevated inflation, tariffs, and demographic changes have weakened retail spending as a growth engine.

He added that current retail data gives the Federal Reserve no reason to cut interest rates, keeping the bias toward higher rates intact, while noting that the consumer remains resilient enough to rule out near-term easing.

Additional data also showed a moderate rise in weekly jobless claims, suggesting the labor market remains relatively stable.

By 9:54 a.m. Eastern Time, the Dow Jones Industrial Average had gained around 270 points, or 0.54%, to 49,963 points. The S&P 500 rose 0.38% to 7,472 points, while the Nasdaq advanced 0.35% to 26,495 points.

Nine of the 11 major sectors within the S&P 500 traded higher, led by the technology sector, which gained around 1%.

On the geopolitical front, Chinese President Xi Jinping told US President Donald Trump at the start of the two-day summit that trade talks were making progress, but warned that tensions over Taiwan could push relations onto a dangerous path and potentially lead to conflict.

Trump’s visit also comes amid the ongoing war with Iran, with a White House official saying the leaders of the world’s two largest economies agreed on the importance of keeping the Strait of Hormuz open and preventing Iran from obtaining nuclear weapons.

The S&P 500 and Nasdaq had already posted fresh record closing highs on Wednesday, extending the recent rally.

Stronger-than-expected inflation data this week, both for consumer and producer prices, also reinforced expectations that the Federal Reserve will keep monetary policy tighter for longer.

Traders are now pricing in more than a 28% probability of a quarter-point rate hike by year-end, up from 20.7% a week ago, according to CME Group’s FedWatch tool.