US equity markets continued their strong upward momentum on Thursday as the S&P 500 and Nasdaq Composite reached new intraday record highs.

Technology shares once again led gains, supported by continued investor enthusiasm surrounding artificial intelligence infrastructure, semiconductor demand, and cloud computing expansion.

The broader rally has persisted despite elevated geopolitical uncertainty tied to the Middle East conflict and growing concerns over inflation pressures driven by higher oil prices.

Investors appeared increasingly focused on long-term AI growth opportunities while balancing concerns surrounding monetary policy and global economic stability.

Nvidia Powers Semiconductor Momentum

Nvidia emerged as one of the market’s biggest drivers after reports suggested the United States approved sales of the company’s H200 artificial intelligence chips to approximately 10 Chinese firms.

The stock climbed roughly 3%, pushing Nvidia’s market valuation toward approximately $5.6 trillion.

The report reinforced investor optimism that AI-related semiconductor demand remains exceptionally strong despite ongoing geopolitical tensions between Washington and Beijing.

Nvidia has become one of the primary beneficiaries of the global artificial intelligence investment boom, with demand for advanced AI processors continuing to surge across cloud computing, enterprise AI, and data center infrastructure markets.

Cisco Hits Record High After Restructuring Announcement

Cisco Systems also delivered one of the strongest performances of the session after shares surged nearly 15% to an all-time high.

The networking company announced plans to cut roughly 4,000 jobs as part of a broader restructuring initiative while simultaneously raising its annual revenue forecast.

Management cited strong demand from hyperscale cloud providers and artificial intelligence infrastructure customers as key drivers behind the improved outlook.

The results further highlighted how AI-related spending continues benefiting large technology infrastructure providers across networking, cloud, and semiconductor industries.

Economic Data Paints Mixed Picture

Investors also analyzed a new batch of US economic data released Thursday.

Retail sales increased 0.5% in April, matching economist expectations, although analysts noted that part of the increase may have reflected higher prices caused by energy inflation rather than stronger consumer demand.

At the same time, weekly unemployment claims rose modestly, suggesting the labor market remains relatively stable despite tighter financial conditions.

Market strategists noted that consumers are still spending, though at a more moderate pace as inflation and elevated borrowing costs continue weighing on household purchasing power.

Federal Reserve Expectations Shift Higher

Recent inflation reports have increasingly shifted market expectations regarding Federal Reserve policy.

Both consumer and producer price readings released this week came in hotter than expected, reinforcing expectations that the Fed may maintain restrictive monetary policy longer than previously anticipated.

Markets are now pricing in rising odds of an interest rate hike later this year rather than multiple rate cuts that investors had expected earlier in 2026.

Higher energy prices linked to the ongoing Middle East conflict remain a central concern because they continue feeding broader inflation pressures throughout the economy.

Trump-Xi Summit Draws Global Attention

Global markets also remained highly focused on the summit between President Donald Trump and Chinese President Xi Jinping taking place in Beijing.

The meeting carries major implications for global trade, artificial intelligence competition, semiconductor exports, and geopolitical stability.

Xi reportedly told Trump that trade negotiations were progressing, though he also warned that tensions surrounding Taiwan remain a significant risk to bilateral relations.

A White House official additionally stated that both leaders agreed the Strait of Hormuz should remain open and that Iran should not obtain nuclear weapons.

The summit is being closely watched by investors seeking signs of greater economic stability between the world’s two largest economies.

AI Boom Continues Supporting Market Leadership

The broader stock market rally continues to be heavily concentrated in artificial intelligence and semiconductor-related sectors.

Chipmakers, networking companies, cloud infrastructure providers, and AI software firms have driven a substantial portion of recent market gains.

Despite concerns surrounding inflation, oil prices, and geopolitical instability, investors continue positioning aggressively around long-term AI infrastructure growth themes.

The durability of the current rally may ultimately depend on whether corporate earnings and economic growth remain strong enough to offset rising interest rates and persistent inflationary pressures.