NEW YORK, May 21 (Xinhua) -- U.S. stocks ended higher on Thursday due to a surge in quantum computing shares and positive developments in the Middle East.
The Dow Jones Industrial Average rose 276.31 points, or 0.55 percent, to a record-setting close of 50,285.66. The S&P 500 added 12.75 points, or 0.17 percent, to 7,445.72, while the tech-heavy Nasdaq Composite Index edged up 22.74 points, or 0.09 percent, to 26,293.1.
Broad-based buying supported the session, with eight of the 11 primary S&P 500 sectors ending in the green. Consumer staples and energy sectors paced the declining groups, down 1.63 percent and 1.01 percent, respectively.
Although crude futures initially spiked during morning trading, prices reversed lower following reports that the United States and Iran had brokered a framework agreement via Pakistani diplomatic mediation. Sentiment was further strengthened after U.S. Secretary of State Marco Rubio said there were "some good signs" of a deal but added that he didn't "want to be overly optimistic."
Consequently, West Texas Intermediate crude for July delivery declined 1.94 percent to settle at 96.35 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery dropped 2.32 percent to settle at 102.58 dollars a barrel on the London ICE Futures Exchange, providing a welcome reprieve for inflation-weary market participants.
Meanwhile, the quantum computing sector experienced explosive gains following a major policy move from Washington. IBM jumped more than 12 percent to lead the blue-chip Dow after the tech pioneer secured a 1-billion-U.S.-dollar grant from the U.S. Department of Commerce. The development sparked a sector-wide rally, propelling smaller industry participants D-Wave Quantum and Rigetti Computing both up more than 30 percent, on news of accompanying federal fund allocations.
Investors also spent the session dissecting Nvidia's highly anticipated quarterly financial update. Although it comfortably beat Wall Street consensus estimates for revenue, profit, and forward guidance, and announced a cash dividend increase to 25 cents, its shares ultimately fell 1.77 percent on Thursday.
Corporate earnings reports created divisions across the retail and manufacturing sectors. Ralph Lauren paced the S&P 500 index with a nearly 14 percent surge, driven by resilient international demand following a strong earnings beat. Conversely, retail giant Walmart sank 7.27 percent after it issued a weaker-than-expected financial outlook on Thursday. ■