- The Dow jumped more than 300 points and moved back above 50,000
- The S&P 500 hit a fresh record high while Nvidia and Cisco fueled gains
- Analysts warn against aggressively shorting a market still driven by bullish momentum
U.S. stocks continued climbing Thursday as the Dow Jones Industrial Average gained more than 300 points and pushed back above the 50,000 level. The S&P 500 also reached a new all-time high near 7491.16, while the Nasdaq extended its recent momentum behind continued strength in technology stocks.
Cisco Systems helped lead the rally after strong earnings, while Nvidia once again added fuel to the broader semiconductor trade. Investors also appeared encouraged by improving sentiment surrounding U.S.-China relations, giving markets another reason to stay risk-on.
Bulls Continue to Dominate
Technical analysts say momentum remains firmly on the side of buyers after the S&P 500 broke above Wednesday’s highs and continued accelerating upward through the afternoon session. Despite concerns that markets may look overbought, traders betting against the rally have largely continued getting squeezed.
Analysts warned that trying to call a market top during a strong bull phase can become both expensive and dangerous. So far, dip buyers continue stepping in whenever weakness appears, reinforcing the broader upward trend.
Key Support Levels Are Now in Focus
The nearest support area for the S&P 500 sits near 7414.85, followed by another swing support level around 7338.54. A break below those levels could weaken short-term momentum, though several additional support zones remain just underneath the market.
One concern still hanging over the rally is market breadth. Much of the recent strength has been concentrated in semiconductor and major technology stocks rather than spreading evenly across all sectors.
If momentum eventually fades, analysts believe semiconductors could also lead the downside correction the same way they helped drive the rally higher. For now though, bulls still appear firmly in control.
