Dow Eyes 50,000 Return as Cisco Surge and Boeing Gains Drive Pre-Market Rally
CNBC reported Thursday that Dow Jones Industrial Average futures climbed 351 points, or 0.7%, putting the index on track to recapture the 50,000 milestone. The move was powered by a blockbuster earnings report from Cisco Systems and renewed optimism around the Trump-Xi summit in Beijing.
Cisco Leads the Charge Higher
Shares of Cisco Systems surged roughly 15% in premarket trade after the networking giant delivered third-quarter results and forward guidance that cleared Wall Street’s bar. The company also announced plans to eliminate nearly 4,000 positions. That single stock added meaningful points to Dow futures, nudging the average back toward the psychologically important 50,000 threshold. Amazon and Nvidia have each added around 30% and 25% respectively over the past two months, also contributing to the index’s recovery.
Boeing Gets a Diplomatic Tailwind
Boeing edged more than 1% higher as traders anticipated that the high-profile summit between President Donald Trump and Chinese President Xi Jinping could unlock new deals for U.S. manufacturers. Trump landed in Beijing accompanied by a roster of corporate heavyweights, including Tesla’s Elon Musk and Nvidia’s Jensen Huang. Treasury Secretary Scott Bessent separately told CNBC that the two nations had agreed a protocol on AI best practices, saying the world’s two AI superpowers were beginning a formal dialogue on responsible development.
Wednesday’s Records Set the Stage
The S&P 500 and Nasdaq Composite both set fresh intraday and closing records on Wednesday, even as a hotter-than-expected inflation reading gave some investors pause. Semiconductor names including Nvidia and Micron Technology did much of the heavy lifting, offsetting pressure on energy-linked sectors.
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Bulls See More Runway for Chipmakers
Creative Planning CEO Peter Mallouk pushed back against bubble fears during an appearance on CNBC’s Power Lunch. He argued that the multi-year technology rally is grounded in real earnings growth rather than speculation. Mallouk described chipmakers as a group he considers undervalued, pointing to a structural demand-supply gap that he believes has considerable room to close. That view aligns with broader analyst sentiment that AI-driven infrastructure spending will sustain elevated capital expenditure across the semiconductor sector for years.
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Asia Markets Trade Mixed Ahead of Summit Outcome
Across Asia, markets offered a mixed picture. Japan’s Nikkei 225 fell nearly 1%, while South Korea’s Kospi gained 1.75%. Samsung shares recovered sharply after briefly shedding $66 billion in market value following news of a threatened 18-day strike by more than 41,000 workers. South Korea’s finance minister warned the potential walkout could weigh on exports and economic growth.
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