U.S. stocks closed higher Thursday, with the Nasdaq Composite and S&P 500 finishing at fresh record highs as investors piled back into artificial intelligence shares and cheered signs of improving U.S.-China trade relations during President Donald Trump’s summit with Chinese leader Xi Jinping in Beijing.
The Dow Jones Industrial Average rose 370.26 points, or 0.75%, to 50,063.5. The Nasdaq Composite climbed 232.88 points, or 0.88%, to 26,635.2, while the S&P 500 advanced 57 points, or 0.77%, to 7,501.25. Crude oil settled near $101.56 a barrel, while the CBOE Volatility Index, or VIX, fell 3.13% to 17.31, signaling easing investor anxiety.
The primary driver behind Thursday’s rally was renewed enthusiasm surrounding AI-related stocks and expectations that the Trump-Xi summit could unlock broader trade and technology agreements between Washington and Beijing. AInvest reported that investors were increasingly betting the summit could lead to breakthroughs in AI chip access, energy cooperation and trade normalization.
Semiconductor and AI infrastructure names led gains after reports that Nvidia received approval to resume certain AI chip sales to Chinese firms, helping fuel another leg higher in the AI trade. Reuters reported that optimism around the Beijing talks pushed major indexes toward record territory throughout the session.
Investor appetite for AI exposure was also reinforced by the blockbuster debut of Cerebras Systems. Shares of the AI chipmaker surged after its highly anticipated IPO, in what Yahoo Finance described as the biggest IPO launch of 2026.
The strong debut added momentum to a market already leaning heavily toward AI-linked companies and infrastructure plays. The Wall Street Journal said the offering could help kick off a broader reopening of the AI IPO market after months of pent-up demand.
Trade headlines out of Beijing added to the bullish tone. Reuters reported that Trump said China agreed to purchase 200 Boeing aircraft, potentially marking China’s first major Boeing order in nearly a decade.
While Boeing shares finished lower after investors questioned the size and details of the agreement, the announcement reinforced hopes that broader commercial ties between the two countries could improve.
Technology, semiconductors and AI infrastructure companies remained leadership groups, while declining volatility and resilient oil prices reflected a market increasingly willing to embrace risk despite lingering concerns surrounding inflation and the Iran war.
Investors now turn their attention to positioning ahead of the weekend and earnings next week from Nvidia, Home Depot and Walmart.