Updates with prices throughout with U.S. markets close, adds Nvidia earnings and oil settlement, and new quote

By Chibuike Oguh and Lawrence White

NEW YORK/LONDON, Aug 28 (Reuters) -Global equity markets eased while the U.S. dollar rebounded on Wednesday, and then chipmakerNvidia'sbetter-than-expected results failed to impress some investors and the company's stock fell 3% in extended trading.

Wall Street's main indexes finished lower, theDow Jones Industrial Average .DJI fell 0.39% to 41,091.42, the S&P 500 .SPX lost 0.60% to 5,592.18 and the Nasdaq Composite .IXIC lost 1.12% to 17,556.03.

Europe's benchmark STOXX index .STOXX climbed 0.33% while Japanese stocks .N225 closed 0.22% higher. MSCI's gauge of all stocks across the globe .MIWD00000PUS was 0.42%lower at 827.32.

Nvidia NVDA.O's third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates after markets closed. The report still failed to impress the most bullish investors who have driven a dizzying rally in its shares as they bet billions on the future of generative artificial intelligence. Shares of the Santa Clara, California-based company fell 3% in extended trading.

Nvidia's stock price is up some 3,000% since 2019 and with a market capitalisation of $3 trillion, a move in its share price affects the broader market. It finished down 2% at $125.61 during regular hours trading.

"They beat the average estimates because they came in around $32 billion and average estimates were $31 billion but some people on the street have them up at like $37 billion revenue estimates," said Michael Ashley Schulman, chief investment officer at Running Point Capital in Los Angeles.

"I think you're seeing some disappointment on some bets but not really disappointment on the company."

A preliminary estimate of second quarter U.S. gross domestic product is due on Thursday. The Fed's preferred inflation measure - the core personal consumption expenditures (PCE) index - will be released on Friday.

Markets, which are fully priced for a 25 basis point U.S. interest rate cut next month, see just over 100 basis points of easing by the end of the year. FEDWATCH

The yield on benchmark U.S. 10-year Treasury notes US10YT=RR, which moves inversely to the price, rose 0.8 basis points to 3.841%.

"The good news is all pretty much priced in whether that be [Federal Reserve Chair Jerome]Powell's promise more or less to cut rates in September and the fact that we're now pricing a soft landing again," said David Spika, chief markets strategist at Turtle Creek Wealth Advisors in Dallas.

"The economic data has been supportive of the fact that the economy is not falling apart."

After a recent run of declines, the dollar was advancing. The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, gained 0.5% at 101.10, with the euro EUR= down 0.63% at $1.1114.

Gold prices were hurt by the stronger U.S. dollar with spot gold XAU= lost 0.68% to $2,507.50 an ounceand U.S. gold futures GCc1 settled 0.6% lower at $2,537.80.

Oil prices fell on concerns about Chinese demand and risks of a broader slowdown. Brent crude futures LCOc1 settled down 1.13% at $78.65 a barrel. U.S. West Texas Intermediate crude CLc1 futures fell 1.34% to $74.52.

Reporting by Chibuike Oguh in New York and Lawrence White in London, Editing by Bernadette Baum, Kirsten Donovan and David Gregorio

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