Global Economy
Wall Street Starts Higher as Nvidia Hits Record High Amid U.S. Inflation Data and China‑U.S. Summit
U.S. equities opened higher on Thursday, with the Dow up 0.75%, the S&P 500 gaining 0.27% and the Nasdaq inching up 0.15%. Nvidia surged 3% after Reuters reported U.S. clearance for Chinese firms to buy its H200 AI chip, pushing the chipmaker to a fresh all‑time high. At the same time, President Xi and President Trump discussed trade progress and the possible reopening of the Strait of Hormuz during a two‑day summit in Beijing. Meanwhile, sharp rises in U.S. import prices—especially fuel—highlight inflation risks linked to the Iran‑related conflict, hinting at possible Fed tightening.
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Market snapshot
The New York Stock Exchange opened modestly higher on Thursday, with the Dow Jones Industrial Average gaining 373.5 points (≈0.75%) to 50,066.7, the S&P 500 up 0.27% at 7,464.7, and the Nasdaq Composite inching up 0.15% to 26,442.8.
Nvidia rockets to a new high
Chipmaker NVDA surged 3% after Reuters reported that the United States has cleared a dozen Chinese firms to purchase the H200, the second‑most powerful AI chip in Nvidia’s portfolio. The rally in semiconductor stocks has helped U.S. indices post consecutive record closes.
China‑U.S. summit in Beijing
President Xi Jinping told President Donald Trump that trade talks are progressing, while the U.S. briefing highlighted both leaders’ intent to reopen the Strait of Hormuz, which has been effectively blocked since late February.
Inflation pressures and geopolitical backdrop
U.S. import prices jumped sharply in April, with fuel costs posting the biggest four‑year rise, underscoring how the conflict in Iran is feeding inflationary pressure. Analysts expect the Federal Reserve may consider a tighter monetary stance if the trend continues.
Outlook
While the tech rally and Nvidia’s record provide short‑term upside, lingering inflation data and Middle‑East tensions keep the broader market’s direction uncertain.