US equities surged on Thursday as the AI trade kept momentum in tech shares. The S&P 500 climbed 0.4%, while the Nasdaq 100 added 0.6% early in the session. Cisco Systems drove the rally with a double‑digit jump after issuing a stronger‑than‑expected sales outlook and announcing a focus on AI‑related job cuts.

The surge was bolstered by the $5.55 billion IPO of Cerebras Systems, an AI chipmaker that priced its shares at $185 each, beating the target range. Retail sales also advanced for a third month, with a 0.5% rise in purchases, signaling consumer resilience amid higher gas prices.

Analysts note that AI is becoming the core of the US equity benchmark. Bloomberg Intelligence strategists highlighted that a 44‑company AI basket now accounts for roughly 45% of the S&P 500’s market cap, driving earnings growth and margin expansion. Despite the upbeat outlook, Barclays’ Ajay Rajadhyaksha cautioned investors that semiconductor stocks are still early in the cycle.

Geopolitically, President Trump’s invitation to Chinese President Xi for a September visit and discussions on fast‑tracking Chinese investment and tariff reductions underscore the ongoing US‑China rivalry. Meanwhile, Stubhub Holdings surged 19% after reporting better‑than‑expected Q1 results.