Cisco drives Wall Street higher, ASX set to rise
Stan Choe
Updated ,first published
The US stock market soared to more records on Thursday after Cisco Systems joined a parade of US companies reporting higher profits than analysts expected at the start of 2026.
The S&P 500 index rose 0.8 percent, reaching its all-time high for the second day in a row. The Dow Jones Industrial Average rose 370 points, or 0.7 percent, to finish above the 50,000 level for the first time since the start of the war with Iran. The Nasdaq composite increased its own record by 0.9 percent.
The Australian share market is poised to rise, with futures pointing to a gain of 46 points, or 0.5 per cent, at the open at 6.31am (AEST). The ASX broke a four-session losing streak on Thursday, rising 0.1 per cent. The Australian dollar weakened to 72.19¢.
Cisco helped lead the market after reporting better profits and revenue than analysts expected in the latest quarter. The tech giant’s shares jumped 13.4 percent for its best day in nearly 15 years, and CEO Chuck Robbins said he was seeing “very strong, broad-based demand for our products.”
Major tech giants in particular are pouring money into AI technology, and Cisco gave a profit forecast for the current quarter that easily beat analysts’ expectations.
Such insatiable demand for artificial intelligence and the huge profits it generates have been the main reasons why the US stock market has broken records throughout this year. Cerebras Systems, an artificial intelligence processor company, raised $5.55 billion after selling shares in an initial public offering, and its shares rose 68.1 percent in its Nasdaq debut on Thursday.
Corporate earnings announced so far this season have “reinforced that this is still an AI-led market, but one where influence is rapidly expanding,” according to Gargi Pal Chaudhuri, chief investment and portfolio strategist at BlackRock.
“What started with a handful of companies is now driving earnings growth in semiconductors, infrastructure and even parts of the industrial economy,” he said.
Apart from AI, other stocks that rose after reporting better-than-expected earnings included StubHub Holdings, up 13.7 percent, Viking Holdings, up 5.5 percent, and Yeti Holdings, up 6.2 percent. All three companies sell non-daily necessities, such as concert tickets, river cruises and insulated water bottles. The strong results from these may be an indication that U.S. consumers are still willing to spend, even though they say in surveys they are discouraged about the economy.
Meanwhile, US President Donald Trump said in his statement to Fox News Channel that China agreed to buy 200 Boeing jets, this number was much less than analysts expected, and the shares of the aircraft manufacturer fell.
Details of the deal, including when and what types of jets would be delivered, were not immediately available, but the amount was much smaller than the package of about 500 planes that sources told Reuters was being discussed ahead of a meeting between Trump and Chinese leader Xi Jinping on Thursday.
Referring to Xi on Fox News’ Hannity channel, Trump said, “There’s one thing he agreed on today; he’s going to order 200 jets… 200 large jets.” he said.
Whether US households will continue to spend and support the economy is a big question as pressure on them increases due to high oil prices and inflation created by the Iran war. Shoppers spent less at U.S. retailers last month than economists expected, a report released Thursday said. But after accounting for gasoline and auto sales, the slowdown wasn’t as bad as economists thought.
Meanwhile, a separate report said more U.S. workers applied for unemployment benefits last week, which could indicate more layoffs. However, the number remains relatively low compared to history.
Treasury yields fluctuated up and down in the bond market immediately following the reports, but remained largely steady. The 10-year yield rose to 4.47 percent from 4.46 percent at the end of Wednesday.
On Wall Street, the S&P 500 index increased by 56.99 points to 7,501.24 points. The Dow Jones Industrial Average rose 370.26 to 50,063.46 and the Nasdaq composite rose 232.88 to 26,635.22.
In foreign stock markets, indices rose in Europe following the mixed closing in Asia. While Japan’s Nikkei 225 index fell 1 percent, South Korea’s Kospi rose 1.8 percent to a new record, thanks to gains in artificial intelligence-related stocks.
Stocks were nearly flat in Hong Kong and fell 1.5 percent in Shanghai after Chinese leader Xi met with Trump in Beijing.
Some investors hope Trump can encourage Xi to use China’s close economic ties with Iran to reopen the Strait of Hormuz. The war-related closure of the strait caused oil tankers to remain in the Persian Gulf instead of distributing crude oil to customers around the world, causing prices to rise.
The price of a barrel of Brent crude, the international standard, rose 0.1 percent to $105.72 on Thursday, well above its pre-war price of about $70.
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