Dow Jones Hits 50,000 For the First Time As Nvidia And Broadcom Power Market Indexes Higher

The Dow Jones Industrial Average (DJINDICES: ^DJI) just crossed 50,000 for the first time ever, and honestly, it feels like the market has been building toward this moment all week.

As of 12:17 p.m. ET Thursday, all three major indexes are up by very similar percentages. The Nasdaq-100 has increased by 1%, the S&P 500 (SNPINDEX: ^GSPC) is also up 1%, and the Dow is a rounding error away from 1% at a 0.94% gain.

The session began unevenly. The Nasdaq-100 opened flat, the S&P 500 started up 0.3%, and the Dow opened with a 0.8% gain. By 10:30 a.m. ET, all three indexes had converged around 0.5% and climbed steadily from there.

^NDX data by YCharts

The catalysts behind today's gains

If you guessed "AI chip stocks" as today's market engine, congratulations on paying attention this year. Nvidia (NASDAQ: NVDA) is up 4.3%, with shares hitting $235.63 and casually adding $248 billion to its market cap. As CEO Jensen Huang followed President Trump on a state visit to China, U.S. regulators just approved Nvidia's request to sell H200 AI accelerators in the Chinese market.

Broadcom (NASDAQ: AVGO) is tagging along nicely, up 4.1% to $434. Wells Fargo just raised its price target to $545, noting that AI semiconductor revenue is running 30% to 40% hotter than expected. That's another trillion-dollar tech stock with a roughly 4% move, easily moving the needle on cap-weighted indexes.

But it's not all high-level politics and Chinese export approvals. Networking giant Cisco Systems (NASDAQ: CSCO) stole the show on a percentage basis, jumping 17% on earnings. With a $456 billion market cap, Cisco isn't heavy enough to move the S&P 500 or Nasdaq-100 needles by much, though.

The Dow passed the 50,000 milestone quietly. High-priced heavyweights Goldman Sachs (NYSE: GS) and Caterpillar (NYSE: CAT) are doing most of the work, as usual. Neither company had much news to share today. It's just another day of heavy index weights and modest price moves.

Boeing (NYSE: BA) is the odd one out, down 4.5% with a modestly bearish effect on the Dow, a barely noticeable cut to the S&P 500, and no consequence at all for the Nasdaq-100. Boeing dropped despite President Trump announcing that China agreed to buy 200 jets. Apparently, investors had already baked that into the stock price. Classic "buy the rumor, sell the news" energy.

Meanwhile, the Strait of Hormuz barely shows up in Thursday's headlines, despite the Iranian conflict's massive impact on oil prices and world markets. That will probably change tomorrow or next week.

The bigger picture

So the Dow is above 50,000, all three indexes gained about 1% today, and AI stocks are running the show as always. Nvidia has gained more than 26% year to date. Broadcom is up by 25%. The market's message remains clear: it really, really likes artificial intelligence.

The question is whether you're comfortable buying at these levels or waiting for a pullback that may or may not come. Either approach is valid.

Just don't let a round number like 50,000 make you feel like you've missed the boat. Indexes hit milestones all the time. What matters is whether the companies you own are building real value over the long haul.

Wells Fargo is an advertising partner of Motley Fool Money. Anders Bylund has positions in Nvidia. The Motley Fool has positions in and recommends Boeing, Broadcom, Caterpillar, Cisco Systems, Goldman Sachs Group, and Nvidia. The Motley Fool has a disclosure policy.