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Nvidia ( NVDA ) shares above $1,000 mark after results

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Boeing ( BA ) sees negative free cash flow in 2024

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Live Nation tumbles on DOJ lawsuit

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Indexes down: Dow 1.4%, S&P 0.6%, Nasdaq 0.23%

(Updated at 2:10 p.m. ET/1810 GMT)

By Chuck Mikolajczak

May 23 (Reuters) - U.S. stocks fell on Thursday, even as

a strong revenue forecast for Nvidia ( NVDA ) prompted a surge in its

shares, but that was overshadowed by economic data showing

inflation was still a concern.

Nvidia ( NVDA ) shares jumped more than 10% to climb above the $1,000

per share mark and helped boost the Nasdaq and S&P 500 to

intraday records in the early stages of trading after the AI

chip company forecast quarterly revenue above estimates and

announced a stock split.

But stocks lost ground after economic data showed U.S. price

pressures increased in May even as business activity accelerated

and as lower weekly jobless claims indicated the labor market

remains on firm footing.

"It may be speaks to the fact that people are now positioned

for disappointing growth data, slower inflation data, rate cuts,

and this morning... it caught people wrong footed," said Brian

Nick Senior Investment Strategist at The Macro Institute in New

York.

"Anything that looks like good news is still being greeted

as bad news, which shows we're still in this sort of Fed relief

rally period where the market's generally happy that interest

rates have stopped going up, but the worst thing would be for

interest rates to continue going up at this point."

The Dow Jones Industrial Average fell 556.66

points, or 1.40%, to 39,114.38, the S&P 500 lost 31.87

points, or 0.60%, to 5,275.14 and the Nasdaq Composite

lost 38.11 points, or 0.23%, to 16,763.44.

The gains helped lift the S&P 500 tech index as

the sole advancer among the 11 major S&P sectors on Thursday.

But despite the gains in Nvidia ( NVDA ), semiconductors on the whole

were lower, with the PHLX semiconductor index down

0.21%.

The rally in equities to record highs this month has been

fueled in part by AI optimism, a solid earnings season and

renewed hopes for rate cuts by the Fed this year. Nvidia ( NVDA ) shares

are up about 11% this year after surging roughly 240% in 2023.

Markets are now pricing in a 52.2% chance for a rate cut

of at least 25 basis points (bps) in September, down from the

nearly 67% a week ago, according to CME's FedWatch Tool.

The Dow was dragged lower in part by a tumble of more than

7% in Boeing ( BA ) after the U.S. planemaker forecast negative

free cash flow in 2024 due to sluggish deliveries.

DuPont ( DD ) announced plans to split into three publicly

traded companies. Shares of the U.S. conglomerate were edged up

0.34%, sharply off earlier highs.

Ticketmaster-owner Live Nation slumped 8.21% after

the U.S. Justice Department and a group of 30 states and the

District of Columbia Thursday sued to break up the concert

promoter.

Declining issues outnumbered advancers for a 5.05-to-1 ratio

on the NYSE and for a 3.59-to-1 ratio on the Nasdaq.

The S&P index recorded 33 new 52-week highs and seven new

lows, while the Nasdaq recorded 132 new highs and 141 new lows.