Stock market today: Dow retakes 50,000 level, S&P 500 and Nasdaq surge to fresh records as AI trade roars back

May 14, 2026 - 20:38

Wall Street staged a powerful rally on Thursday, with the Dow Jones Industrial Average climbing back above the 50,000 mark while the S&P 500 and Nasdaq Composite surged to fresh all-time highs. The broad-based advance was fueled by a resurgent trade in artificial intelligence stocks, which snapped back into favor after a brief period of consolidation.

Investor sentiment was further bolstered by the start of a high-stakes summit between President Donald Trump and Chinese President Xi Jinping in Beijing. Markets viewed the meeting as a potential de-escalation point in the ongoing trade tensions between the world's two largest economies, a factor that has weighed on global markets for months.

The S&P 500 rose 1.2%, closing above its previous record set earlier in the week. The tech-heavy Nasdaq jumped 1.8%, powered by gains in major chipmakers and software companies tied to AI development. Nvidia, Microsoft, and Alphabet all posted strong gains as traders piled back into names that have led the market's rally over the past year.

"The AI narrative is not dead, it's just taking a breather," said one market strategist. "Today's move shows that investors still believe the long-term potential is enormous, especially with the backdrop of a potential trade deal."

The Dow's return to the 50,000 level was a psychological milestone, though the index remains volatile as traders digest mixed economic data and corporate earnings. The rally was broad, with nine of the 11 S&P sectors finishing in positive territory, led by technology and communication services.

The summit in Beijing is expected to continue through Friday, with markets watching for any concrete agreements on tariffs, technology transfer, and intellectual property. For now, the combination of AI momentum and geopolitical optimism has given investors a clear reason to buy.