Trump-Xi Summit: Wall Street hits record highs as tech and AI stocks power markets

Global stock markets surged on Thursday (May 14), with major Wall Street indices reaching fresh record highs as investor enthusiasm around artificial intelligence and technology stocks continued to fuel market momentum. The rally was led by strong gains in the tech sector, with Cisco Systems soaring 13.4 per cent after raising its earnings outlook. Semiconductor startup Cerebras Systems also made a powerful Nasdaq debut, surging 68.2 per cent during its first trading session. All three major US stock indices closed firmly higher, with the S&P 500 and Nasdaq Composite ending at record highs.

Investor attention also focused on Beijing, where Chinese President Xi Jinping welcomed US President Donald Trump with a grand state ceremony at the Great Hall of the People. The event featured military honors, a 21-gun salute, and schoolchildren chanting “Welcome!” as Trump attended the official reception. Speaking during the visit, Trump said the relationship between China and the USA is going to be better than ever before. However, Xi also delivered a warning regarding Taiwan.

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"If mishandled, the two nations could collide or even come into conflict, pushing the entire China-US relationship into a highly perilous situation," Xi said, according to Chinese state media. Markets were also watching for signs of progress toward a potential US-Iran agreement that could reopen the Strait of Hormuz, a key global oil shipping route affected by tensions following the US-Iran conflict. Trump told Fox News that Xi had offered China's assistance in reopening the Hormuz Strait and had pledged not to provide military equipment to Iran. Oil prices fluctuated throughout the day before ending slightly higher.

European markets also ended the session in positive territory. London stocks gained 0.5 percent after data showed the UK economy had a solid start to the year, though geopolitical tensions and domestic political uncertainty continued to weigh on sentiment. The British pound weakened against both the U.S. dollar and the euro as pressure mounted on Prime Minister Keir Starmer. British Health Secretary Wes Streeting resigned, while Greater Manchester Mayor Andy Burnham launched a bid to return to Parliament, fueling speculation about growing political unrest within the UK government.

Elsewhere in Europe, Frankfurt climbed more than one percent while Paris gained 0.9 percent, supported by strength in technology shares. In Asia, markets delivered mixed performances, with Shanghai and Tokyo closing lower while Hong Kong ended the day flat.

Key figures at around 2015GMT (1:45 AM IST)

• Brent North Sea Crude:UP 0.1 percent at 105.72 a barrel
• West Texas Intermediate: UP 0.2 percent at 101.17 a barrel
• New York - DOW: UP 0.8 percent at 50,063.46 (close)
• New York - S&P 500: UP 0.8 percent at 7,501.24 (close)
• New York - Nasdaq Composite: UP 0.9 percent at 26,635.22 (close)
• London - FTSE 100: UP 0.5 percent at 10,372.93 (close)
• Paris - CAC 40: UP 0.9 percent at 8,082.27 (close)
• Frankfurt - DAX 30: UP 1.3 percent at 24,456.26 (close)
• Tokyo - Nikkei 225: DOWN 1.0 percent at 62,654.05 (close)
• Hong Kong - Hang Seng Index: FLAT at 26,389.04 (close)
• Shanghai - Composite: DOWN 1.5 percent at 4,177.92(close)
• Pound/dollar: DOWN at 1.3400 from $1.3523 on Wednesday
• Euro/pound: UP at 87.09 pence from 86.61 pence
• Euro/dollar: DOWN at $1.1673 from $1.1711
• Dollar/yen: UP at 158.33 yen from 157.86yen