US Stocks Rally Amid Gains in Nvidia and Cisco, as US-China Trade Talks Take Center Stage

US Equity Benchmarks Climb Amid Optimism Over US-China Meeting

US equity benchmarks experienced a positive trend on Thursday, driven by upbeat sentiments surrounding the US-China meeting and a surge in shares of Nvidia and Cisco. At the opening bell, the Dow Jones Industrial Average rose 150.4 points, or 0.30%, to 49,843.58. The S&P 500 saw a more modest gain, increasing by 10.1 points, or 0.14%, to 7,454.4. Meanwhile, the Nasdaq Composite rose 23.1 points, or 0.09%, to 26,425.468.

The optimism is partly attributed to hopes that the Trump administration's China trip will lead to breakthroughs in Washington's efforts to secure a truce deal with Iran, which would result in the unblocking of the Strait of Hormuz. Investors are also expecting a reduction in commerce frictions between the two superpowers. During the meeting, Chinese leader Xi Jinping's reception of US President Donald Trump featured a mix of formal spectacle and a sharp caution regarding Taiwan.

In other economic news, US retail sales in April rose 0.5% from the preceding month. However, this expansion was largely driven by the price increase effect of costlier fuel rates following Iran's barring of Hormuz to most fuel vessels.

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Cisco shares were among the top performers, jumping 16.2% as the firm increased its yearly forecasts, citing intense demand for AI-specific assets.