US Futures Extend Record Highs as AI Rally Powers Markets

US equity futures moved slightly higher on Thursday, extending record highs as strong momentum in artificial intelligence-related stocks continued to drive broader market gains despite elevated geopolitical and inflationary risks.

Futures tied to the S&P 500 and the Nasdaq Composite rose approximately 0.3% to fresh record levels, while futures linked to the Dow Jones Industrial Average climbed above the 50,000 mark, approaching all-time highs.

Investor sentiment continued to be supported by increasingly aggressive growth forecasts from artificial intelligence companies, helping offset concerns surrounding high energy prices linked to disruptions in the Persian Gulf and a more hawkish outlook from the Federal Reserve following strong April retail sales data.

Shares of Cisco surged roughly 15% in premarket trading after the company reported stronger-than-expected earnings and issued optimistic guidance. Cisco also announced plans to cut approximately 4,000 jobs as part of efforts to improve operational efficiency and productivity.

Meanwhile, NVIDIA gained another 2% in premarket trading, extending its monthly rally to roughly 15%. The move followed reports that the US government approved exports of H200 AI chips to 10 Chinese firms, signaling a potential easing in technology restrictions amid ongoing diplomatic engagement between Washington and Beijing.

The announcement coincided with President Donald Trump’s visit to Beijing alongside major technology executives, with both sides so far maintaining a more conciliatory tone compared to the peak of last year’s US-China trade tensions.

Markets continue to balance optimism surrounding AI-driven earnings growth with concerns over inflation, interest rates, and geopolitical instability, particularly as energy markets remain volatile due to tensions in the Middle East and disruptions affecting global oil supply routes.