US Stocks Rise Toward Records as Cisco Beats Profit Expectations

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.

Other companies that rose after reporting stronger-than-expected results included StubHub Holdings, up 15.3 per cent, Viking Holdings, up 6.4 per cent, and Yeti Holdings, up 7 per cent. The three sell concert tickets, river cruises and insulated drink containers, respectively.

Their results may indicate that consumers remain willing to spend on non-essential items despite survey evidence of caution about the economy.

A report released Thursday showed that overall spending at U.S. retailers last month fell more than economists had expected. The slowdown was less severe after excluding gasoline and automobile sales. A separate report showed that the number of Americans filing for unemployment benefits rose last week, though the level remained low by historical standards.

Treasury yields fluctuated after the reports but ended little changed, with the 10-year note yield holding at 4.46 per cent. In overseas markets, European indexes rose after a mixed session in Asia. Japan's Nikkei 225 fell 1 per cent while South Korea's Kospi gained 1.8 per cent to a record on AI-related shares.

Stocks were flat in Hong Kong and fell 1.5 per cent in Shanghai. Brent crude oil, the international benchmark, rose 0.1 per cent to settle at $US105.72. The price remains well above the roughly $US70 level seen before the war with Iran, which has closed the Strait of Hormuz and restricted tanker movements.