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Q2 GDP second estimate shows US economy grows 3%

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CrowdStrike ( CRWD ) up after upbeat Q2 revenue

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Apple ( AAPL ) gains after Citigroup ( C/PN ) selects company as top AI pick

(Updates with market close)

By Johann M Cherian and Noel Randewich

Aug 29 (Reuters) -

The Dow notched a record high close on Thursday in mixed

trading following robust U.S. economic data, while artificial

intelligence chipmaker Nvidia ( NVDA ) 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 ( NVDA ) quarterly revenue forecast late on

Wednesday disappointed investors accustomed to the chipmaker

beating expectations by massive margins in recent quarters.

Nvidia's ( NVDA ) stock fell, trimming its 2024 gain to around 140%.

Other AI-related stocks were mixed. Microsoft ( MSFT ) gained, while

Google-owner Alphabet dipped.

Broadcom ( AVGO ) and Advanced Micro Devices ( AMD )

also slid for much of the session.

"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 ( AAPL ) rose after Citigroup ( C/PN ) named the iPhone maker

its top AI pick.

Apple ( AAPL ) and Nvidia ( NVDA ) 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 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.

According to preliminary data, the S&P 500

gained 0.37 points, or 0.01%, to end at 5,592.55 points,

while the Nasdaq Composite lost 37.51 points, or 0.21%,

to 17,518.51. The Dow Jones Industrial Average

rose 247.74 points, or 0.60%, to 41,336.56.

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 ( CRWD ) gained after the cybersecurity company

beat quarterly revenue estimates, while Dollar General ( DG )

slumped after slashing its annual sales and profit forecasts.