The Dow notched a record high close on Thursday in mixed trading following robust US economic data, while artificial intelligence chipmaker Nvidia dropped after its largely in-line forecast failed to impress investors.
The Dow Jones Industrial Average hit an all-time high of 41,577.97 before closing at 41,335.05, a gain of of 243.63 points, or 0.6%. The blue-chip index’s previous record close was 41,250.50 on Tuesday.
The S&P 500 was flat, while the Nasdaq edged down 0.2%.
The economy grew faster than initial estimates due to strong consumer spending, the Commerce Department reported, supporting expectations the US 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 quarterly revenue forecast late on Wednesday disappointed investors used to the chipmaker beating expectations by massive margins in recent quarters.
Nvidia’s stock dipped 6.4%, trimming its 2024 gain to 144%.
AI-related stocks were mixed. Microsoft gained 0.6%, while Google-owner Alphabet and Broadcom fell nearly 1%.
“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 Us Bank Wealth Management. “We see the AI revolution still in the relatively early innings and that bodes well for tech names.”
Apple rose 1.5% after Citigroup named the iPhone maker its top AI pick.
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.
Odds of a reduction of 25 basis points in September stand at 67.5%, while those of a larger 50 bps cut are at 32.5%, according to CME Group’s Fed Watch Tool.
CrowdStrike gained 2.8% after the cybersecurity company beat quarterly revenue estimates, while Dollar General slumped 32% after slashing its annual sales and profit forecasts.
