The Dow jumped over 400 points to reach another record high on August 29, 2024. Investors felt relieved after positive economic data showed the U.S. economy remains strong. However, Nvidia’s forecast disappointed some traders, shifting their focus back to economic indicators.
Key takeaways:
- The Dow rose 431 points, hitting an intraday record of 41,522.
- The S&P 500 and Nasdaq also saw gains of 0.9% and 1.2%, respectively.
- Nvidia’s revenue forecast fell short of expectations, causing its shares to drop.
- The U.S. economy showed faster growth amid strong consumer spending.
Dow Hits Record High Amid Positive Economic Data and Nvidia Concerns
The Dow Jones Industrial Average surged over 400 points, reaching an intraday record of 41,522. This increase was driven by a report indicating stronger-than-expected growth in the U.S. economy, primarily due to robust consumer spending. In contrast, Nvidia’s revenue forecast did not meet high expectations, leading to a decline in its shares. This has caused investors to reassess their focus, highlighting the importance of economic indicators in the current market climate.
Investor Sentiment Shifts as Nvidia’s Forecast Disappoints
Despite the Dow’s impressive gains, Nvidia’s latest forecast has raised concerns among investors. The chipmaker’s revenue outlook did not surpass expectations, leading to a 2% drop in its stock. This marks a shift in focus for investors, who are now closely monitoring economic performance rather than solely relying on tech sector growth.
The Impact of Economic Data on Market Performance
Recent economic reports have shown that the U.S. economy is growing faster than anticipated. Key factors influencing this growth include:
- Strong consumer spending
- Lower-than-expected jobless claims
- Positive forecasts for upcoming economic reports
Tech Sector Performance Amid Nvidia’s Challenges
While Nvidia faced challenges, other tech stocks performed well. Major companies like Microsoft, Meta, and Alphabet saw gains of over 0.9%. Additionally, Apple rose by more than 2% after being named a top AI pick by Citigroup. This indicates a broader resilience in the tech sector, despite Nvidia’s setbacks.
