{"id":61909,"date":"2026-05-13T17:38:17","date_gmt":"2026-05-13T21:38:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings\/61909\/"},"modified":"2026-05-13T17:38:17","modified_gmt":"2026-05-13T21:38:17","slug":"cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings\/61909\/","title":{"rendered":"Cisco Surges on Order Growth as Markets Hit Record Highs Despite Fed Rate Hike Warnings"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings\/61909\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings\/61909\/#Cisco_Delivers_Strong_Q3_Beat_and_Robust_Order_Growth\" >Cisco Delivers Strong Q3 Beat and Robust Order Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings\/61909\/#Fed_Warns_of_Potential_Rate_Hikes_Amid_Geopolitical_Shocks\" >Fed Warns of Potential Rate Hikes Amid Geopolitical Shocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings\/61909\/#Tech_Giants_Lead_Markets_to_Record_Highs_Ford_Rallies\" >Tech Giants Lead Markets to Record Highs; Ford Rallies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings\/61909\/#Microsoft_Diversifies_AI_Strategy_Beyond_OpenAI\" >Microsoft Diversifies AI Strategy Beyond OpenAI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/cisco-surges-on-order-growth-as-markets-hit-record-highs-despite-fed-rate-hike-warnings\/61909\/#Geopolitical_Tensions_Escalate_in_the_Middle_East\" >Geopolitical Tensions Escalate in the Middle East<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Cisco (<a href=\"\/stock\/CSCO\">CSCO<\/a>) shares surged after reporting Q3 revenue of $15.8 billion and a massive 50% year-over-year jump in networking product orders.<\/strong><\/li>\n<li><strong>Federal Reserve official Susan Collins warned that the central bank may need to raise interest rates if inflation pressures broaden, citing risks from the Iran war and new tariffs.<\/strong><\/li>\n<li><strong>U.S. stock markets reached fresh record highs led by a tech rally, while Ford (<a href=\"\/stock\/F\">F<\/a>) saw its largest single-day gain since 2020, rising 13%.<\/strong><\/li>\n<li><strong>Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>) is actively exploring AI startup deals beyond its partnership with OpenAI to diversify its portfolio and navigate antitrust concerns.<\/strong><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cisco_Delivers_Strong_Q3_Beat_and_Robust_Order_Growth\"><\/span>Cisco Delivers Strong Q3 Beat and Robust Order Growth<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cisco (<a href=\"\/stock\/CSCO\">CSCO<\/a>) reported impressive third-quarter results, beating analyst expectations on both the top and bottom lines. The networking giant posted <strong>revenue of $15.8 billion<\/strong>, surpassing the estimated $15.56 billion, with <strong>adjusted EPS coming in at $1.06<\/strong>.<\/p>\n<p>The most significant highlight was the <strong>50% year-over-year surge in networking product orders<\/strong>, signaling a massive rebound in infrastructure spending. Within its optics business, <strong>Acacia posted more than $1 billion in orders<\/strong> for the quarter, representing triple-digit growth. <em>Investors reacted positively to the company&#39;s raised full-year guidance, which now projects revenue between $62.8 billion and $63.0 billion.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fed_Warns_of_Potential_Rate_Hikes_Amid_Geopolitical_Shocks\"><\/span>Fed Warns of Potential Rate Hikes Amid Geopolitical Shocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Federal Reserve Bank of Boston President Susan Collins signaled a hawkish shift, stating the Fed <strong>may need to raise interest rates<\/strong> if inflation pressures continue to broaden. Collins noted that while underlying inflation had been trending down, the <strong>economic shock from the Iran war<\/strong> and potential tariff pass-throughs are masking progress.<\/p>\n<p>Market sentiment remains cautious as <strong>inflation data came in hotter than expected<\/strong>, leading to rising bond yields. <em>The central bank is closely monitoring whether price pressures spread beyond energy costs into the broader services sector, which could necessitate a tighter monetary policy for a longer duration.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Giants_Lead_Markets_to_Record_Highs_Ford_Rallies\"><\/span>Tech Giants Lead Markets to Record Highs; Ford Rallies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the looming threat of higher rates, U.S. stocks hit <strong>fresh record highs<\/strong> on Wednesday. The rally was spearheaded by technology leaders including Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>), Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>), and Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>), supported by falling oil prices and strong corporate earnings optimism.<\/p>\n<p>In the automotive sector, Ford (<a href=\"\/stock\/F\">F<\/a>) shares <strong>ended 13% higher<\/strong>, marking the stock&#39;s most significant rally in six years. This surge comes as U.S. manufacturers intensify pressure on the administration to <strong>keep Chinese electric vehicles out of the domestic market<\/strong> to protect local industrial interests.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Microsoft_Diversifies_AI_Strategy_Beyond_OpenAI\"><\/span>Microsoft Diversifies AI Strategy Beyond OpenAI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>) is reportedly seeking new deals with AI startups to prepare for a future that is less dependent on OpenAI. Sources indicate the company has <strong>discussed a potential deal with AI startup Inception<\/strong> and previously considered acquiring Cursor before stepping back due to antitrust worries.<\/p>\n<p>This strategic pivot occurs as Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) continues to streamline its operations, <strong>slashing more jobs this week<\/strong> within its Selling Partner Services unit. <em>The moves by big tech reflect a dual focus on aggressive AI expansion and disciplined cost management amid a shifting regulatory and economic landscape.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Tensions_Escalate_in_the_Middle_East\"><\/span>Geopolitical Tensions Escalate in the Middle East<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Geopolitical instability remains a primary concern for global markets as <strong>Iran\u2019s Foreign Minister Araghchi issued a stern warning<\/strong> against nations colluding with Israel. Araghchi characterized hostility toward the Iranian people as a &quot;reckless gamble&quot; and stated that those sowing division would be held to account.<\/p>\n<p>Simultaneously, the UAE Foreign Ministry <strong>rejected reports of a planned visit by Israeli Prime Minister Netanyahu<\/strong>, though it maintained that relations remain open under the framework of the Abraham Accords. <em>These developments continue to inject volatility into energy markets, with European Central Bank President Christine Lagarde urging EU leaders to show &quot;courage&quot; in strengthening the bloc&#39;s economic foundations.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Cisco (CSCO) shares surged after reporting Q3 revenue of $15.8 billion and a massive 50% year-over-year jump in 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