Dow closes at record high; Nvidia falls after forecast
Q2 GDP second estimate shows US economy grows 3%
CrowdStrike up after upbeat Q2 revenue
Apple gains after Citigroup selects company as top AI pick
Updates with market close
By Johann M Cherian and Noel Randewich
Aug 29 (Reuters) - The Dow notched a record high closeon Thursday in mixed trading followingrobust U.S. economic data, while artificial intelligence chipmaker Nvidia dropped after its largely in-line forecast failed to impress investors.
The U.S. economy grew faster than initial estimates due to strong consumer spending, the Commerce Department reported, supporting expectations the U.S. is likely to avoid a recession.
"Downward revisions to inflation accompanying an upward revision to spending builds the case for a soft landing," said Jeffrey Roach, chief economist for LPL Financial.
Nvidia's NVDA.O quarterly revenue forecast late on Wednesday disappointed investors accustomed to the chipmaker beating expectations by massive margins in recent quarters.
Nvidia's stock fell, trimming its 2024 gain to around 140%.
Other AI-related stocks were mixed. Microsoft gained, while Google-owner Alphabet GOOGL.O dipped.
Broadcom AVGO.O and Advanced Micro Devices AMD.O also slid for much of the session.
"It's too early to put the bear suit on for AI related companies. We think there's still more upside," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "We see the AI revolution still in the relatively early innings and that bodes well for tech names."
Apple AAPL.O roseafter Citigroup named the iPhone maker its top AI pick.
Apple and Nvidia arein talks to invest in OpenAI as part of a new fundraising round that could value the ChatGPT maker above $100 billion, according to media reports.
The Dow Jones Industrial Average .DJI closed at its highest level ever, while S&P 500 index .SPX wasjust below its July record high close as expectations for a September interest rate cut remained robust.
According to preliminary data, the S&P 500 .SPX gained 0.37 points, or 0.01%, to end at 5,592.55 points, while the Nasdaq Composite .IXIC lost 37.51 points, or 0.21%, to 17,518.51. The Dow Jones Industrial Average .DJI rose 247.74 points, or 0.60%, to 41,336.56.
A Labor Department report showed marginally lower-than-expected jobless claims for the previous week.
The July Personal Consumption Expenditures report, due on Friday, could offer hints on the central bank's monetary policy easing trajectory.
CrowdStrike CRWD.O gained after the cybersecurity company beat quarterly revenue estimates, while Dollar General DG.N slumped afterslashing its annual sales and profit forecasts.
Share price gains of technology stocks since February https://reut.rs/4dHB8qz
US gross domestic product https://reut.rs/3Mrgi2K
Reporting by Purvi Agarwal and Johann M Cherian in Bengaluru; Editing by Pooja Desai, Shounak Dasgupta, Shinjini Ganguli and Richard Chang
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Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
