Dow Hits Record Amid Mixed Trading; Nvidia Slumps on In-line Forecast

The Dow reached a record high on Thursday despite mixed trading, driven by positive U.S. economic data. Nvidia's revenue forecast failed to impress investors, resulting in a stock dip. Strong consumer spending has boosted economic growth, supporting a soft landing, while AI-related stocks showed varied performances.

The Dow achieved a record high close on Thursday, buoyed by robust U.S. economic data, despite mixed trading. Artificial intelligence chipmaker Nvidia saw its stock decline after delivering a forecast that met expectations but failed to wow investors.

The U.S. economy grew at a faster pace than initially estimated, spurred by strong consumer spending, according to the Commerce Department. The revised data bolstered the outlook that the country might avoid a recession. "Downward revisions to inflation alongside an upward revision to spending strengthen the case for a soft landing," commented Jeffrey Roach, chief economist for LPL Financial.

Despite Nvidia's disappointing revenue forecast, broader AI-related stocks experienced mixed results. Microsoft rose, while Alphabet, Broadcom, and AMD fell. "It's too early to give up on AI-related companies; we see more upside potential," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. Notably, Apple gained after being named the top AI pick by Citigroup.

(With inputs from agencies.)