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US Stocks Rise Toward Records as Cisco Beats Profit Expectations
The S&P 500, Dow Jones and Nasdaq all climbed on Thursday as Cisco Systems reported higher profit and revenue than analysts expected for the start of 2026. Australian sharemarket futures pointed to a 0.7 per cent gain at the open. Corporate earnings have been led by demand for artificial-intelligence technology.
May 14, 3:26 PM·2m read2 sources
The Sydney Morning HeraldAudio version
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U.S. stocks rose toward fresh records on Thursday after Cisco Systems reported profit and revenue for the start of 2026 that exceeded analysts' forecasts. The S&P 500 added 0.8 per cent to its all-time high set the previous day. The Nasdaq composite rose 0.9 per cent and was also adding to its record with one hour of trading remaining.
Australian sharemarket futures at 5.02am AEST pointed to a gain of 59 points, or 0.7 per cent, at the open. The ASX rose 0.1 per cent on Thursday to end a four-session losing streak. The Australian dollar stood at US72.27 cents.
Systems stock jumped 13 per cent after the company reported better-than-expected profit and revenue for its latest quarter. The company's CEO said it saw very strong, broad-based demand for its products. Big technology companies have been investing heavily in artificial-intelligence infrastructure, and Cisco provided a current-quarter profit forecast that topped analysts' expectations.
Such demand for AI technology and the profits it generates have been a major factor behind U.S. stock market records set this year. An AI processor company raised $US5.55 billion in an initial public offering and its shares rose 72 per cent on their first day of trading on the Nasdaq.
Corporate earnings reported so far this season have reinforced that this remains an AI-led market whose impact is broadening, according to Gargi Pal Chaudhuri, chief investment and portfolio strategist at BlackRock. What began with a small group of companies is now supporting earnings growth across semiconductors, infrastructure and parts of the industrial economy, she said.
