U.S. stocks moved higher early Thursday as investors welcomed signs of improving U.S.-China relations during President Trump’s summit with Chinese President Xi Jinping while continuing to lean into the artificial-intelligence investment boom. The Dow Jones Industrial Average rose 313.77 points, or 0.63%, to 50,007.0, while the Nasdaq Composite gained 79.96 points, or 0.30%, to 26,482.3. The S&P 500 climbed 25.60 points, or 0.34%, to 7,469.85.
The early advance reflected growing optimism that the Trump XI meeting could stabilize trade and geopolitical tensions that have weighed on corporate planning and global markets in recent months. According to Reuters, Xi told American executives traveling with Trump that China’s economy would continue opening to foreign business, signaling Beijing’s effort to reassure multinational firms amid concerns over tariffs, supply chains and technology restrictions.
Markets also continued to receive support from enthusiasm surrounding AI infrastructure spending. Cisco shares helped reinforce that theme after the company raised expectations for AI-related demand. Cisco now expects roughly $9 billion in AI hyperscaler orders, highlighting how legacy networking firms are benefiting from the data-center buildout tied to generative AI.
The Dow’s stronger performance compared with the Nasdaq suggested investors were broadening beyond megacap technology into industrial, financial and cyclical shares that could benefit most from easing trade uncertainty and resilient economic growth.
Still, several warning signs remained in focus. Oil prices stayed elevated near $100 a barrel after recent volatility tied to the Iran war and concerns surrounding global energy supply routes. Higher energy costs have complicated the Federal Reserve’s inflation fight and increased worries that interest rates could stay elevated longer than investors expect.
Apollo Global Management Chief Economist Torsten Slok warned this week that the U.S. government is poorly positioned for a recession because fiscal deficits are already historically large outside of downturn periods.
Slok also pointed to lessons from the 1970s, arguing that policymakers risk repeating mistakes if inflation pressures are declared defeated too early.
For now, however, investors appeared willing to focus on diplomacy, AI spending and economic resilience, extending a rally that has repeatedly pushed major indexes back toward record territory.