New York — Stock markets experienced mixed movements Thursday as investors processed unexpectedly strong economic growth in the U.S. alongside robust earnings from Nvidia, a leader in artificial intelligence chips.

The tech-heavy Nasdaq saw a slight increase, while the S&P 500 remained steady and the Dow Jones Industrial Average dipped marginally. Nvidia’s shares fell by 1.4 percent, despite the company announcing a staggering profit of $26.4 billion and record revenues of $46.7 billion for the second quarter. This decline comes in the wake of a noticeable drop in revenue from the key data center segment.

Investors eagerly awaited Nvidia’s earnings announcement late Wednesday, given the company’s significant influence on the tech sector and the recent surge in its stock prices. However, the decline in data center revenue raised concerns among analysts, leading to questions about Nvidia’s continued growth amid increasing competition in the AI market.

Market apprehensions also stem from fears of a potential spending bubble in the artificial intelligence sector that could jeopardize Nvidia’s financial outlook. Joshua Mahony, chief market analyst at a leading trading firm, noted the heightened scrutiny on whether Nvidia could maintain its growth trajectory in the face of stiffening competition and an overheated market sentiment.

On the broader economic front, recent data revealed that the U.S. economy grew by 3.3 percent in the second quarter, surpassing an earlier estimate of 3.0 percent. Richard Flax, chief investment officer at Moneyfarm, spoke about the initial fears of a sharp economic slowdown, expressing relief that the figures were stronger than anticipated. The revised growth largely reflects increases in consumer spending and business investments, according to the Commerce Department.

Additionally, the overall economic growth was bolstered by a decline in U.S. imports, which negatively impact GDP calculations. This drop occurred as businesses reduced their shipments following a rush to stock up prior to tariff hikes introduced under previous administrations.

The fresh economic data may influence the Federal Reserve’s approach to interest rates. While expectations for further rate cuts remain, analysts suggest the surprisingly resilient domestic demand could limit the scope for significant reductions over the coming year. Flax projected that the central bank might still move forward with a 25-basis-point cut in the next meeting but cautioned that the robust demand suggests a constrained monetary policy.

As markets look ahead, the upcoming release of a key inflation report on Friday will be critical in shaping expectations for additional rate cuts. Investors remain watchful for any signs of inflationary pressures that could affect the Fed’s policy decisions.