The S&P 500 eased slightly from record highs on Thursday as investors balanced stronger U.S. economic growth data with earnings from artificial intelligence leader Nvidia (NASDAQ: NVDA).
By early afternoon, the Dow Jones Industrial Average was up 25 points, or 0.1%, while the S&P 500 gained 0.2% after briefly touching a new peak of 6,497.35. The Nasdaq Composite rose 0.4%. All three indexes remain on track for solid monthly gains, with the S&P 500 and Nasdaq up more than 2% in August and the Dow climbing over 3%.
Nvidia slips despite earnings beat
Nvidia reported quarterly results that exceeded analyst expectations late Wednesday, along with a revenue forecast for the third quarter above Wall Street estimates. However, weakness in data center revenue and uncertainty around China weighed on sentiment, pushing shares lower. The company confirmed it made no H20 chip sales to China during the quarter and excluded such shipments from its outlook.
Other semiconductor stocks also retreated, including AMD (NASDAQ: AMD), TSMC (NYSE: TSM), and Broadcom (NASDAQ: AVGO). Elsewhere in tech, CrowdStrike Holdings (NASDAQ: CRWD) declined after weaker-than-expected guidance, while Snowflake (NYSE: SNOW) jumped after raising its annual product revenue forecast.
Mixed corporate results
In consumer goods, Jack Daniel’s maker Brown-Forman (NYSE: BFb) beat sales expectations thanks to strong demand for ready-to-drink beverages and spirits. Bath & Body Works (NYSE: BBWI) missed profit forecasts due to higher costs and weaker discretionary spending. Dollar General (NYSE: DG) lifted its annual sales and profit outlook, supported by steady demand from cost-conscious U.S. consumers navigating inflation and tariffs.
U.S. economic growth revised higher
The Commerce Department reported that U.S. GDP grew by 3.3% in the second quarter, stronger than the earlier 3.0% estimate. This follows a 0.5% contraction in the first quarter. The upward revision added momentum to bets that the Federal Reserve could cut interest rates in September.
New York Fed President John Williams reinforced this view, noting on Wednesday that “every meeting is live” and that risks are more balanced. Investors now await key inflation and labor market data, including the Fed’s preferred PCE price index on Friday and the monthly payrolls report next week.
