Dow Jones Hits Record High as Tech Giants Face Mixed Results

Dow closes at record high, Nvidia falls after forecast

The Dow reached a record high on Thursday amid mixed trading following strong U.S. economic data, while Nvidia dropped after its forecast failed to impress investors. The U.S. economy grew faster than anticipated, bolstering expectations of avoiding a recession. Apple rose as Citigroup named it a top AI pick, while other AI stocks saw mixed performance.The Dow notched a record high close on Thursday in mixed trading following robust 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 quarterly revenue forecast late on Wednesday disappointed investors accustomed to the chipmaker beating expectations by massive margins in recent quarters. Nvidia's stock fell over 6%, trimming its 2024 gain to 137%. Other AI-related stocks were mixed. Microsoft gained 0.6%, while Google-owner Alphabet dipped 0.7%. Broadcom and Advanced Micro Devices each slid almost 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 U.S. 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. Apple and Nvidia are in 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 rose 0.59% to 41,335.05 points, an all-time closing high. The S&P 500 index ended barely changed at 5,591.96 points, just below its July record high close as expectations for a September interest rate cut remained robust. The Nasdaq declined 0.23% to 17,516.43 points. 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 gained 2.8% after the cybersecurity company beat quarterly revenue estimates, while Dollar General slumped 32% after slashing its annual sales and profit forecasts. Advancing issues outnumbered falling ones within the S&P 500 by a 2.1-to-one ratio. The S&P 500 posted 68 new highs and four new lows; the Nasdaq recorded 91 new highs and 90 new lows. Volume on U.S. exchanges was relatively light, with 10.5 billion shares traded, compared to an average of 11.6 billion shares over the previous 20 sessions.

US Stocks: Dow closes at record high, Nvidia falls after forecast

The Dow notched a record high close on Thursday in mixed trading following robust 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 quarterly revenue forecast late on Wednesday disappointed investors accustomed to the chipmaker beating expectations by massive margins in recent quarters. Nvidia's stock fell over 6%, trimming its 2024 gain to 137%. Other AI-related stocks were mixed. Microsoft gained 0.6%, while Google-owner Alphabet dipped 0.7%. Broadcom and Advanced Micro Devices each slid almost 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 U.S. 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. Apple and Nvidia are in 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 rose 0.59% to 41,335.05 points, an all-time closing high. The S&P 500 index ended barely changed at 5,591.96 points, just below its July record high close as expectations for a September interest rate cut remained robust. The Nasdaq declined 0.23% to 17,516.43 points. 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 gained 2.8% after the cybersecurity company beat quarterly revenue estimates, while Dollar General slumped 32% after slashing its annual sales and profit forecasts. Advancing issues outnumbered falling ones within the S&P 500 by a 2.1-to-one ratio. The S&P 500 posted 68 new highs and four new lows; the Nasdaq recorded 91 new highs and 90 new lows. Volume on U.S. exchanges was relatively light, with 10.5 billion shares traded, compared to an average of 11.6 billion shares over the previous 20 sessions. (Reporting by Purvi Agarwal and Johann M Cherian in Bengaluru; Editing by Pooja Desai, Shounak Dasgupta, Shinjini Ganguli and Richard Chang)

Dow closes at record high, Nvidia falls after forecast

STORY: The Dow notched another record high close on Thursday, while the Nasdaq was dragged lower by shares of Nvidia, after a forecast from the AI chip darling failed to impress investors. The Dow added six-tenths of a percent, the S&P 500 was flat and the Nasdaq dipped marginally. Even though Nvidia reported earnings late Wednesday that beat estimates, its quarterly revenue forecast disappointed investors who have grown accustomed to blowout results. Nvidia's stock fell more than 6%, trimming this year's gain to 137%. Ben McMillan is chief investment officer and co-founder of IDX Advisors. "They issued some downward guidance as it relates to their new Blackwell processor lineup, which everybody's excited about. That's proving to be a little bit more challenging to manufacture than anticipated. They did and also announced a $50 billion stock buyback, which is positive, very positive you know, reflects continued confidence in their cash flow. But I think investors are starting to question, you know the growth rate going forward and with these high flying tech stocks particularly you know AI-related this year." Other AI-related stocks were mixed. Shares of Microsoft gained, while Google-owner Alphabet dipped. Apple rose about one and a half percent after Citigroup named the iPhone maker its top AI pick. Among other movers, shares of Dollar General slumped a whopping 32% after the company slashed its annual sales and profit forecasts. Investors now turn their attention to Friday's Personal Consumption Expenditures report for July, which could offer hints on the trajectory of the Federal Reserve's upcoming rate cuts.

US stock market Thursday: Dow Jones sets new record, S&P 500, Nasdaq down. Check Nvidia, Alphabet, Apple shares

US stock market indexes -- S&P 500 and Nasdaq -- had a tepid day of trading even though Dow Jones scaled new heights. Dow Jones rose to a record high but S&P 500 and Nasdaq Composite were flat as US stock market indexes had a mixed showing at Wall Street. The Dow Jones Industrial Average closed at its highest level ever, while S&P 500 index was just below its July record high close as expectations for a September interest rate cut remained robust. S&P 500 gained 0.37 points, or 0.01 per cent, to end at 5,592.55 points, while the Nasdaq Composite lost 37.51 points, or 0.21 per cent, to 17,518.51. The Dow Jones Industrial Average rose 247.74 points, or 0.60 per cent, to 41,336.56. The movements came on the back of data indicating the US economy grew at an annual rate of 3.0 percent in the April to June period -- revised upwards from 2.8 percent. The U.S. 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. Also Read: Is the U.S. trying to control Telegram by using France as its proxy? Diplomatic standoff may begin Nvidia's stock fell, trimming its 2024 gain to around 140 per cent. Other AI-related stocks were mixed. Microsoft gained, while Google-owner Alphabet dipped. Broadcom and Advanced Micro Devices also slid for much of the session. Apple rose 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. Also Read : Lioness Season 2: What we know about Paramount+ premiere date, filming, plot and cast Q1. What is the status of Dow Jones? A1. The Dow Jones Industrial Average closed at its highest level ever. The Dow Jones Industrial Average rose 247.74 points, or 0.60 per cent, to 41,336.56. Q2. Which were main stocks on Thursday? A2. Nvidia's stock fell, trimming its 2024 gain to around 140 per cent. Other AI-related stocks were mixed. Microsoft gained, while Google-owner Alphabet dipped. Broadcom and Advanced Micro Devices also slid for much of the session. Apple rose.