Cisco leads Wall Street to more records and the Dow back toward 50,000

U.S. stock markets climbed Thursday, pushing the Dow Jones Industrial Average toward 50,000—its first time above that level since before the war with Iran began. The S&P 500 and Nasdaq also hit new records, with the S&P 500 up 0.3% and the Nasdaq rising 0.3% by mid-morning. Cisco Systems led gains with a 16.9% jump after reporting stronger-than-expected quarterly profits and revenue. CEO Chuck Robbins attributed the growth to “very strong, broad-based demand for our products,” highlighting increased investment in artificial-intelligence technology by major tech firms. StubHub Holdings and Fossil Group also surged, up 15.1% and 9.8% respectively, signaling continued consumer spending on non-essential goods despite mixed economic signals. Retail sales data showed shoppers spent less last month than expected, though the decline was less severe after excluding gasoline and auto purchases. Meanwhile, initial unemployment claims rose, suggesting potential job market weakness. Treasury yields fluctuated but remained lower, with the 10-year yield dropping to 4.44% from 3.46% late Wednesday. Abroad, European indexes rose following mixed results in Asia, where Hong Kong stocks were flat and Shanghai fell 1.5%. The decline in Shanghai coincided with a meeting between Chinese leader Xi Jinping and former U.S. President Donald Trump in Beijing. Investors hope Trump could encourage Xi to use China’s economic ties with Iran to reopen the Strait of Hormuz, which has been closed due to the war, disrupting global oil flows. Brent crude oil prices dipped 0.7% to $104.86 but remain elevated compared to pre-war levels of around $70. The economic reports and geopolitical developments created a backdrop of cautious optimism, with Wall Street closely watching consumer spending trends amid high oil prices and inflation linked to the Iran conflict.