The S&P 500 Index notched another record close on Thursday, propelled higher on tailwinds from artificial intelligence darling Nvidia's (NVDA  ) strong second-quarter results. The boost was also seen throughout the other AI tech names, as market participants took the chipmaker's extended revenue growth as a sign that valuations are matching demand.

The broader market index rose 0.3% to settle at 6,501.86 after snitching a new all-time intraday high about the 6,500 level earlier in the session. The tech-heavy Nasdaq Composite (QQQ  ) also advanced over 0.5% to close at 21,705.16, while the Dow Jones Industrial Average (DIA  ) set its own new record, climbing over 70% to end at 45,636.90.

Nvidia -- who currently holds the top spot as most valuable company in the world, boosting a staggering market capitalization of nearly $4.4 trillion -- reported better-than-expected earnings results late Wednesday, with its revenue growing 56% annually to $30 billion in its second-quarter.

Still, the company's last quarter represented its slowest growth since the generative AI boom entered the market in mid-2023. Nvidia also guided for its current quarter revenue to only slightly exceed analyst estimates, with many analysts noting after the report that the outlook did not include sales of its H20 chip in China. The company is currently working out a deal with the Trump administration to continue sales in one of its largest markets, and revenue is expected to beat expectations if the chipmaker is successful this quarter.

Offering another brightspot for the AI industry on Thursday, Snowflake (SNOW  ) also topped market estimates in its second-quarter, benefitting from increased demand for its cloud-based offerings, lifting shares of peers MongoDB (MDB  ) and Datadog (DDOG  ) alongside it after raising its annual product revenue outlook by about $700 million to $4.4 billion.

The strong performance of key market drivers also helped offset lingering concerns over the Federal Reserve's independence, as Fed Board Governor Lisa Cook filed a lawsuit against President Donald Trump on Thursday to challenge his move earlier this week to fire her. The legal claim also names Fed Chair Jerome Powell and the board of governors as defendants.

"This case challenges President Trump's unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would be the first of its kind in the Board's history," wrote attorney Abbe Lowell, who is representing Cook, wrote in the lawsuit.

Further supporting the session's sentiment, the U.S. Commerce Department reported the U.S. economy expanded at a 3.3% annualized rate in the second quarter, coming in ahead of its initial estimate of 3.0%.

The country's gross domestic product growth for the April-through-June period was mainly attributed to declining imports, rising as wholesalers rushed to stock up ahead of Trump's first tariff deadline in early April. Imports, which negatively impact GDP growth, fell 29.8%, only improving slightly from the prior estimate of 30.3%.

Macroeconomic uncertainties from the long-term impact of Trump's tariffs were also present on Thursday, with Best Buy (BBY  ) warning its second half of the year could be affected. The electronics retailer maintained its full-year guidance.

"Given the uncertainty of potential tariff impacts in the back half, both on consumers overall as well as our business, we feel it is prudent to maintain the annual guidance we provided last year," CEO Matt Bilunas, adding that the company is, however, "trending toward the higher end of our sales range."

Looking ahead, market participants will digest the latest inflation reading on Friday, which is expected to show July's personal consumption expenditures price index rise 0.2% on the month and 2.6% annually.

Friday also marks the last trading day of a surprisingly busy August. All three of the major averages are set to end the month in positive territory, with the S&P 500 and Dow each trending about 1.8% higher while the Nasdaq outperforms with 2.5% gains.