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
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
