Dow Hits Record High Amid Mixed Trading and AI Stock Moves

The Dow Jones Industrial Average achieved a record high close on Thursday, driven by strong U.S. economic data. However, Nvidia's forecast failed to impress investors. Despite mixed movements in AI-related stocks, Apple's rise and potential investment in OpenAI hint at continued optimism for the sector.

The Dow Jones Industrial Average reached a new record high on Thursday, following promising U.S. economic data. The Commerce Department reported that the economy grew faster than initially estimated due to robust consumer spending, suggesting the U.S. might avoid a recession.

Despite the economic optimism, Nvidia's quarterly revenue forecast fell short of expectations, causing its stock to drop by over 6%, and cutting its 2024 gains to 137%. Other AI-related stocks showed mixed results: Microsoft increased by 0.6%, while Alphabet, Google's parent company, dipped by 0.7%.

In other market movements, Apple rose 1.5% after being named Citigroup's top AI pick. The iPhone maker, along with Nvidia, is reportedly in talks to invest in OpenAI, valuing the ChatGPT creator above $100 billion. Meanwhile, the S&P 500 index remained relatively flat, and the Nasdaq saw a minor decline. Trading volume on U.S. exchanges was slightly below average.

(With inputs from agencies.)