Zacks Equity Research
4 min read
Wall Street closed higher on Thursday following positive developments at the U.S.-China summit. Strong earnings data lifted investors’ sentiment. Market participants also weighed mixed economic data. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.8% or 370.26 points to close at 50,063.46. Notably, 18 components of the 30-stock index ended in positive territory while 12 ended in negative territory. The blue-chip index closed above the key technical barrier of 50,000 for the first time since Feb. 11.
The tech-heavy Nasdaq Composite finished at 26,635.22, advancing 0.9% or 237.88 points due to the solid performance by AI semiconductor giants. This marked the tech-laden index’s new record close. The index touched an intraday all-time high of 26,707.14.
The S&P 500 gained 0.8% to finish at 7,501.24, reflecting the benchmark’s new record closing high. The index touched an intraday all-time high of 7,517.12. The benchmark closed above the key 7,500 mark for the first time in its history.
Six out of 11 sectors of the broad-market index ended in positive territory while five ended in negative territory. The Information Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) rose 0.9% and 0.8%, respectively. On the other hand, the Utilities Select Sector SPDR (XLU) and the Financials Select Sector SPDR (XLF) fell 1.1%, each.
The fear gauge CBOE Volatility Index (VIX) was down 3.4% to 17.26. A total of 18.77 billion shares were traded on Thursday, higher than the last 20-session average of 18.17 billion. Advancers outnumbered decliners on the NYSE by a 1.6-to-1 ratio. On the Nasdaq, a 1.39-to-1 ratio favored advancing issues.
U.S.-China Summit
President Donald Trump and Chinese Premier Xi Jinping opened a two-day meeting in Beijing. The two leaders discuss bilateral trade and tariffs as well as artificial intelligence-related issues. Also, U.S. arms sales to Taiwan, Iran-related Middle East conflicts and blockade of oil tankers in the crucial Strait of Hormuz were discussed. In their initial comments, the two sides welcome the outcome of the meeting.
Strong Earnings Results
Cisco Systems Inc. CSCO reported third-quarter fiscal 2026 non-GAAP earnings of $1.06 per share, beating the Zacks Consensus Estimate by 1.92%. The figure increased 10% year over year. Revenues of $15.841 billion topped the consensus mark by 1.71% and grew 12% year over year.
The solid performance of the global networking equipment giant was primarily driven by massive demand for the company’s products by hyperscalers to support the significant growth of AI-powered network traffic. Management has decided to retrench 4,000 manpower to focus on AI, silicon and optical businesses.
As a result, the stock price of Cisco Systems jumped 13.4%. Cisco currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
