Wall Street opened higher, with the Dow Jones returning above 50,000 points, supported by the Cisco rally and optimism about relations between the United States and China. Investors are looking favorably at the higher-than-expected quarterly results of the technology giant and at the relaxing signs that emerged from the summit between Donald Trump and Xi
Jinping.
The Dow Jones rose by 0.7%, gaining more than 370 points, while the S&P 500 rose by 0.3% and the Nasdaq limits the increases to 0.1%, after the new records recorded in the previous session.Above all, Cisco Systems drives the industrial price list, which flies by 15% after publishing quarterly accounts and guidance above Wall Street expectations. The company also announced a restructuring plan with the cut of almost 4,000 jobs. Boeing was also positive (+1%), favored by expectations of possible commercial agreements between Washington and Beijing after the Trump-Xi summit. NVIDIA also performed well, up more than 2%, after Reuters rumors that the United States authorized about ten Chinese companies to buy the group's H200 chips.
The technology sector thus continues to lead the rally in the American markets. In the last two months, Cisco and Amazon have gained about 30%, while Nvidia has risen by 25%, fueling the Dow Jones race despite geopolitical tensions in the Middle East and fears related to energy inflation. Among the issues at the center of the US-China summit are also the situation in Iran and the security of the Strait of Hormuz, which both sides consider it strategic to keep open to avoid new pressure
on oil prices. Investors also remain focused on the semiconductor sector, the protagonist of the recent Wall Street race together with stocks such as Micron Technology. According to Peter Mallouk, CEO of Creative Planning, the sector would still have room for growth: “The demand for chips remains enormous and the sector still appears undervalued compared to the potential
for future profits.”