S&P 500 futures are up 0.3%, driven by a mix of strong corporate earnings and geopolitical developments, with the Dow Jones futures rising 0.8% as it approaches the critical 50,000-point threshold. Cisco’s impressive Q3 results, which included record revenue of $15.8 billion and a substantial increase in AI infrastructure orders, have propelled its stock up 16-18%. Meanwhile, the AI chipmaker Cerebras made a splash with its Nasdaq debut, raising $5.55 billion amid overwhelming demand.

The ongoing Trump-Xi summit in Beijing is also a significant market catalyst, with reports suggesting the U.S. may allow Nvidia to sell H200 chips to Chinese companies, a move that could unlock a vital market for the semiconductor sector. Technology stocks, particularly in semiconductors, are outperforming, while media and some healthcare companies are lagging.

Market professionals should note that the AI infrastructure sector remains robust, as evidenced by Cisco’s results and Cerebras’ IPO, reinforcing the notion that the AI supercycle is still in play.

Source: xtb.com