[New York Stock Exchange] Rises Across the Board as U.S.-China Summit Begins

Semiconductor Stocks, Including Nvidia, Rise

As the summit between U.S. President Donald Trump and Chinese President Xi Jinping began, all three major U.S. stock indices opened higher on May 14 (local time).

According to the Home Trading System (HTS), as of 9:50 a.m., the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) was up 272.00 points (0.54%) from the previous trading day, reaching 49,965.20. The S&P 500 index, which focuses on large-cap stocks, rose by 32.62 points (0.43%) to 7,476.87, and the tech-heavy Nasdaq index climbed 103.60 points (0.39%) to 26,505.95.

New York Stock Exchange. New York (USA) - Photo by Yoonjoo Hwang

During the U.S.-China summit, both sides discussed U.S.-China relations, the Taiwan issue, and global matters. In particular, reports indicated that China also agreed that the Strait of Hormuz should remain open. The two leaders emphasized the need for cooperation during their marathon meeting, which lasted for 135 minutes. However, there were no visible outcomes, such as a concrete agreement or a joint statement.

The market on this day was notably affected by Cisco Systems. Bloomberg reported that Cisco Systems posted a better-than-expected revenue outlook and announced a workforce reduction plan to focus on the artificial intelligence (AI) market, leading to its largest stock price surge in 14 years.

Cisco Systems projected its revenue would reach between $16.7 billion and $16.9 billion by July. Bloomberg’s compiled revenue forecast was $15.8 billion. As a result, the stock surged 13.64% and was trading at $115.65.

Most of the top market capitalization stocks were trending downward. Apple fell by 0.33%, Microsoft by 0.44%, Amazon by 0.17%, Alphabet by 0.75%, and Tesla by 0.18%. However, semiconductor stocks such as Nvidia (up 2.45%), TSMC (up 1.56%), and Broadcom (up 3.43%) were on the rise.

Investor Peter Mallouk predicted that there is room for further increases in the stock prices of semiconductor manufacturers. Mallouk analyzed, "Most of the market so far has seen a long-term uptrend led by technology stocks," adding, "Such growth is due to expected earnings, not a speculative bubble."

The CEO of Creative Planning also explained, "I believe semiconductor manufacturers are generally undervalued," and "There is ample room for growth as supply far outpaces demand."

Meanwhile, international oil prices declined across the board. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for June delivery was down 0.32% from the previous session at $100.69. On the ICE Futures Exchange, Brent crude for July delivery was down 0.40% at $105.17.

This content was produced with the assistance of AI translation services.