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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 selects company as top AI pick

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Dollar General ( DG ) plunges after cutting annual forecasts

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Indexes up: Dow 0.70%, S&P 0.70%, Nasdaq 1.04%

(Updated at 11:45 a.m. ET/1545 GMT)

By Johann M Cherian and Purvi Agarwal

Aug 29 (Reuters) - The tech-heavy Nasdaq led Wall

Street's main indexes higher on Thursday after data showed a

still robust U.S. economy, while AI chip firm Nvidia ( NVDA ) slipped as

its largely in-line forecast failed to meet lofty expectations

of investors.

A Commerce Department report showed the U.S. economy grew

faster than initial estimates, amid strong consumer spending.

"Downward revisions to inflation accompanying an upward

revision to spending builds the case for a soft landing,"

Jeffrey Roach, chief economist for LPL Financial, said.

Markets have swung between marginal gains and losses this

week in the run-up to Nvidia's ( NVDA ) results, as traders waited to see

if the company would sustain its unmatched revenue growth.

Nvidia's ( NVDA ) largely in-line revenue forecast for the

current quarter disappointed investors, despite upbeat

second-quarter results. The chip bellwether's shares were down

3.2%.

"This is the first time that there has been criticism of the

estimates beat and the outlook raise. It is not as great as some

investors had anticipated," said Peter Andersen, founder of

Andersen Capital Management.

Semiconductor peers Broadcom ( AVGO ) and Advanced Micro

Devices ( AMD ) rose 1.7% and 1.1%, respectively, aiding a 1.6%

rise in the Philadelphia SE Semiconductor index.

Nvidia's ( NVDA ) heavyweight megacap customers, which have been the

focus of market euphoria on the prospect of artificial

intelligence integration boosting corporate profits, also rose

with Microsoft ( MSFT ), Meta and Alphabet up

more than 1.5% each.

Apple ( AAPL ) gained more than 2.4% after Citigroup

selected the iPhone maker as its top AI pick over Nvidia ( NVDA ). This

helped the tech sector gain 0.9%.

At 11:45 a.m. ET, the Dow Jones Industrial Average

was up 289.54 points, or 0.70%, at 41,380.96, the S&P 500

was up 39.02 points, or 0.70%, at 5,631.20, and the Nasdaq

Composite was up 182.80 points, or 1.04%, at 17,738.82.

Communication services led broader gains, with

nine out of 11 sectors trading higher on the benchmark index.

"We're kind of bouncing back from fears about Nvidia ( NVDA ) and

having a relief rally," said Jay Hatfield, portfolio manager at

InfraCap.

The benchmark S&P 500 is about 0.6% away from a

record high, while the Dow was at an all-time peak, as

expectations for a September interest rate cut stayed robust.

Odds of a reduction of 25 basis points in September stand at

67.5%, while those of a larger 50 bps cut are at 32.5%,

according to CME Group's Fed Watch Tool.

A Labor Department report showed jobless claims were

marginally lower than expected for the previous week.

Friday's Personal Consumption Expenditures data for June,

could offer hints on the central bank's monetary policy easing

trajectory.

CrowdStrike ( CRWD ) gained 4.6% after the cybersecurity

company beat quarterly revenue estimates, while Dollar General ( DG )

slumped 28% after slashing its annual sales and profit

forecasts.

Advancing issues outnumbered decliners for a 2.66-to-1 ratio

on the NYSE and a 2.22-to-1 ratio on the Nasdaq.

The S&P index recorded 50 new 52-week highs and four new

lows, while the Nasdaq recorded 65 new highs and 71 new lows.