NEW YORK: Wall Street stocks crept down on Thursday as investors digested earnings by AI chip giant Nvidia and an upward revision to US economic growth.
In early trading, the Dow Jones Industrial Average slid 0.1 percent to 45,505.64 as did the broad-based S&P 500 to 6,472.76.
The tech-heavy Nasdaq Composite Index inched down 0.1 percent too, to 21,566.23.
The movements came after Nvidia reported quarterly earnings Wednesday that beat expectations.
But its shares slipped amid concerns about an artificial intelligence chip spending bubble and the company’s stalled business in China.
Wall Street mixed in countdown to Nvidia results; tech valuations in focus
“The stock rallied strongly in front of earnings” so “a little sell-off” isn’t unusual, said Adam Sarhan of 50 Park Investments.
The California-based firm posted profit of $26.4 billion on record revenue of $46.7 billion in the recently ended quarter, driven by intense demand for chips from major tech companies powering AI datacenter computing.
Nvidia shares were down 2.7 percent in early trading.
Early Thursday, the world’s biggest economy also published a revision to its GDP growth figures for the second quarter.
US gross domestic product rose at an annual rate of 3.3 percent in the April to June period, revised upwards from 3.0 percent announced in July, according to the Department of Commerce.
The stronger-than-expected showing could give the Federal Reserve room to lower interest rates, Sarhan said, noting that “the economy is not too strong, just a little bit softer.”
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