Wall St poised to open slightly higher after Nvidia results, economic data
Corrects paragraph 16 to say expected PCE data is for July, not June
Q2 GDP second estimate shows US economy grows 3%
CrowdStrike slips on FY forecast cut after global tech outage
Salesforce gains after upbeat quarterly results
Futures up: Dow up 0.59%, S&P 500 up 0.25%, Nasdaq up 0.26%
By Johann M Cherian and Chuck Mikolajczak
Aug 29 (Reuters) -Wall Street's main indexes were set to open slightly higher on Thursday after AI chip firm Nvidia's largely in-line forecast and data that showed the U.S. economy remained robust.
Chip bellwether Nvidia's NVDA.O shares pared some losses and were last down 3.1% in premarket trading, following a largely in-line revenue forecast for the current quarter that overshadowed upbeat second-quarter results.
"This is the first time that there has been criticism of the estimates beat and the outlook raise. It is not as great as some investors had anticipated," said Peter Andersen, founder of Andersen Capital Management.
"Nvidia might be showing early signs of slowdown in capital expenditure for artificial intelligence."
Semiconductor peers Broadcom AVGO.O and Advanced Micro Devices AMD.O fell 0.5% each.
However, the declines were limited by gains in Nvidia's heavyweight megacap customers, which have been the focus of market euphoria on the prospect of artificial intelligence integration boosting corporate profits.
Microsoft MSFT.O rose 0.5%, Meta META.O added 0.6% and Alphabet GOOGL.O and Amazon.com AMZN.O rose more than 0.7% each, while Apple AAPL.O gained 1.6%.
At 08:45 a.m. ET, Dow E-minis 1YMcv1 were up 245 points, or 0.59%, S&P 500 E-minis EScv1 were up 14.25 points, or 0.25%, and Nasdaq 100 E-minis NQcv1 were up 51 points, or 0.26%.
Markets have seesawed between marginal gains and losses in the run-up to Nvidia's results, as traders waited to see if the company would sustain its unmatched revenue growth. There was also nervousness about what its earnings could mean for the trajectory of highly valued AI-related stocks.
The benchmark S&P 500 .SPX is 1.3% from a record high, while the Dow .DJI is hovering around an all-time peak, with expectations for an interest rate cut at the U.S. Federal Reserve's upcoming September meeting staying robust.
Odds of a reduction of 25 basis points in September stand at 67.5%, while those of a larger 50 bps are at 32.5%, according to CME Group's Fed Watch Tool.
The U.S. economy grew faster than initially thought in the second quarter amid strong consumer spending. Gross domestic product increased at a 3.0% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its second estimate of second-quarter GDP, an upward revision from the 2.8% rate reported last month.
"The economy is not slipping into a recession anytime soon and that's beneficial for the stock market, along with a rate cut that's very likely coming in September," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
Separately, a Labor Department report showed initial claims for unemployment benefits for the week ending Aug. 24 stood at 231,000, marginally lower than estimates of 232,000 as per economists polled by Reuters.
Friday's Personal Consumption Expenditure data for the month of July, the Fed's preferred inflation gauge, could offer hints on the central bank's monetary policy easing trajectory.
Among other movers, Dow-component Salesforce CRM.N beat Wall Street expectations for second-quarter results, sending the enterprise cloud firm's shares up 4.4%.
CrowdStrike CRWD.O dropped 2.1% after the cybersecurity company cut its revenue and profit forecasts in the aftermath of last month's global tech outage.
Nvidia's revenue growth is decelerating Nvidia's revenue growth is decelerating https://reut.rs/3AyfQwN
Reporting by Purvi Agarwal and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Shounak Dasgupta
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