The U.S. stock market closed higher on Thursday, with all three major indices posting gains. The S&P 500 climbed 56.99 points to 7,501.24, the Nasdaq Composite added 232.88 points to 26,635.22, and the Dow Jones Industrial Average rose 370.26 points to 50,063.46. The Dow's return to the 50,000 level marked its first close above this threshold since February 2020. The broad-based rally was driven by a resurgence in the AI trade, with tech stocks leading the charge. Cisco, Nvidia, Boeing, and other tech and industrial names were among the notable movers, with investors also taking cues from the Trump-Xi summit, which raised hopes for improved U.S.-China relations.

The overall tone of the session was risk-on, with investors seemingly optimistic about the potential for a positive resolution to the U.S.-China trade tensions. The S&P 500's first close above 7,500 since February 2020 and the Dow's return to the 50,000 level were significant milestones, reflecting the market's confidence in the economic outlook. However, there was also a note of caution, with some analysts warning of a potential domino effect if the economy were to face setbacks. The AI trade continued to drive the market, with tech stocks benefiting from strong demand for AI-related products and services. The rally was broad-based, with all three major indices posting gains, indicating a widespread optimism across different sectors.