Trader Edward McCarthy is pictured working on the New York Stock Exchange floor, May 13, 2026.Richard Drew/AP
The Dow Jones Industrial Average surpassed the 50,000 mark on Thursday, disregarding a resurgence of inflation and an apparent stalemate in discussions pertaining to the Iran war.
The increase in stocks happened while President Donald Trump visited Chinese President Xi Jinping for a crucial meeting between the heads of the globe’s two biggest economies.
The Dow rose by 370 points, equating to 0.7%, while the S&P 500 gained 0.3%, and the tech-dominated Nasdaq advanced 0.1%. The Dow initially exceeded 50,000 in February.
A number of business leaders accompanied Trump on the journey, including Tesla CEO Elon Musk, Nvidia CEO Jensen Huang, and Apple CEO Tim Cook.
Following a noteworthy welcoming event, Trump engaged in talks with Xi on the opening day of a multi-day summit, during which Trump stated his intention to strengthen diplomatic and economic relations.
Trader Edward McCarthy is pictured working on the New York Stock Exchange floor, May 13, 2026.Richard Drew/AP
The trip happened at an important juncture for Trump, as the conflict with Iran amplified costs for Americans domestically, predominantly because of Iran’s successful obstruction of the Strait of Hormuz. China is Iran’s main oil purchaser.
Inflation increased for a second successive month as the conflict continued to cause gasoline prices to soar in April, according to governmental information released this week.
Yearly inflation reached its highest point in three years, according to data from the U.S. Bureau of Labor Statistics.
Positive investor sentiments arise from powerful corporate profits, in addition to less severe economic repercussions from the war than some analysts had anticipated, some analysts previously indicated to ABC News.
Trump, they mentioned, has demonstrated a readiness to withdraw from actions if they pose a threat of a significant market response, offering reassurance to investors apprehensive about a drawn-out dispute.
Regardless of the disturbance, certain indicators of economic well-being have proven to be robust.
Hiring experienced a slowdown in April but stayed strong, surpassing economists’ predictions, according to governmental information revealed last week. The unemployment rate remained consistent at 4.3% in April, a relatively low figure by historical benchmarks.
Furthermore, the economy expanded at an annualized rate of 2% in the initial quarter of 2026, denoting an acceleration from the 0.5% growth observed in the prior quarter.
ABC News reporters Kevin Shalvey and Jon Haworth played a part in this story.
This story is still developing. Please revisit for updates.
Sourse: abcnews.go.com