On the 14th, the three major U.S. stock indexes in New York closed higher across the board. Hopes for investment in the artificial intelligence (AI) industry grew again, and economic data showed that U.S. consumer spending remains solid despite high inflation, lifting the broader market.
On the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average rose 0.7% from the prior session to finish the day. The large-cap-focused Standard & Poor's (S&P) 500 gained 0.8%, topping 7,500 for the first time. The tech-heavy Nasdaq 100 also closed up 0.7%.
Network equipment maker Cisco Systems saw its shares surge 13% immediately after it released a sales outlook far above market expectations. AI chip startup Cerebras Systems jumped 68% on its first day of trading.
AI chip leader Nvidia has also risen for seven straight sessions recently, putting a $6 trillion market capitalization within reach. Taiwan's Foxconn, a key server assembly partner for Nvidia, also released first-quarter net income that beat market expectations, underscoring that massive global demand for AI hardware remains intact.
Even amid persistent anxiety over soaring energy prices, consumption indicators that reflect the underlying strength of the U.S. economy did not falter. Retail sales for April, released that day, rose for a third straight month. In particular, "core retail sales," which feed directly into the calculation of goods consumption in first-quarter U.S. gross domestic product (GDP), beat economists' expectations. The strong retail sales figures are seen as a green light that the U.S. economy is avoiding recession and maintaining a stable growth trajectory.
Brett Kenwell, an analyst at investment platform eToro, said, "The April retail sales report shows that U.S. consumers are holding up despite soaring gas prices," adding, "But the group with its hands on the wheel of the market right now is not consumers but tech stocks."
Wall Street veteran strategist Louis Navellier said, "Backlogs of orders for companies related to AI and data centers continue to build, so corporate earnings next quarter are likely to be even stronger," emphasizing that in a market ruled by uncertainty, stocks with solid fundamentals are the best defense.
Easing fears of an energy price spike due to geopolitical crises and war also helped steady the stock market. U.S. President Donald Trump said China is willing to support talks with Iran. Trump is currently seeking a diplomatic solution to end the war and reopen the Strait of Hormuz, a key global oil transit route. West Texas Intermediate (WTI) crude settled at $101.88 a barrel, up 0.9%, maintaining a relatively stable trend.
There were also cautionary voices after the market broke to new highs. Bloomberg macro strategist Tatiana Darie warned, "U.S. stock market revenue is at a historic low and being driven by a very small number of names," adding, "The entire market is precariously standing with too much weight resting on the very few pillars of AI."