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Investors are set to get an update on the company’s financial results after the closing bell next Thursday
Credit: Charles-McClintock Wilson / NurPhoto / Getty Images

Key Takeaways

• Adobe said Anil Chakravarthy will be its new CEO starting in December, succeeding Shantanu Narayen.
• Many investors will be eager to see how Chakravarthy will address worries about AI disruption.
• The stock has lost over a fifth of its value this year and more than half from its 2024 highs.

After a yearslong slump for Adobe’s stock, can a new CEO drive a comeback? 

The creative software giant late yesterday named Anil Chakravarthy its new CEO starting in December, ending months of speculation about who would succeed Shantanu Narayen after his plan to step down was announced back in March. 

The initial response from investors isn’t encouraging. Adobe shares, which coming into today’s session had lost roughly 20% of their value since the start of the year, dropped 7% Friday.

Chakravarthy, who’s been at Adobe (ADBE) for six and a half years and currently leads the company’s customer experience unit, is “not who many expected,” according to analysts at Jefferies. They thought the job would go to 19-year veteran and creative unit head David Wadhwani, who left shortly after the announcement. 

“With his departure, we expect others to follow as Anil reshapes the organization,” the Jefferies analysts wrote. “With Adobe facing significant headwinds from AI, we expect the board of directors may also see changes to onboard deeper AI expertise.”

Why This Matters to Investors

Adobe stock, much like shares of other software companies, has been hit hard by investor concerns about AI disruption. The leadership transition at Adobe adds another layer of uncertainty, and the new CEO will need to give investors confidence that the company is equipped to adapt to the challenges and opportunities posed by AI.

Given Chakravarthy’s background, Jefferies suggested he could be “well tuned to the needs of Adobe’s large enterprise clients,” and said they look forward to “hearing his views on running the creative side of the business and transforming it for the new age of AI.” 

Narayen said in a release that he “could not be more confident” that Chakravarthy is “the right person to lead Adobe’s growth in an AI-driven era.” Narayen will become executive chair and work closely with Chakravarthy through the transition, the company said. 

Adobe highlighted Chakravarthy’s role in leading the development of several “category-defining products using the power of AI to deliver breakthrough customer experiences,” including Adobe CX Enterprise, GenStudio and Brand Visibility. 

“In aggregate, we believe the announcement is a positive in relation to addressing the uncertainty,” JPMorgan analysts told clients, while investors watch for Chakravarthy’s next moves.

Investors are set to get an update on the company’s financial results after the closing bell next Thursday.

This article has been updated since it was first published to reflect more recent prices.

Job seekers meet with recruiters during a career fair at the Carson Event Center on June 30, 2026.
Credit: Justin Sullivan / Getty Images

Key Takeaways

• U.S. employers added 162,000 jobs in August, blowing past expectations.
• The job gains were largest in leisure and hospitality and government.
• The labor market is remaining resilient to economic shocks, including high fuel prices.

The job market is healthier than most forecasters believed.

U.S. employers added 162,00 jobs in August, accelerating after adding an upwardly revised gain of 21,000 in July, the Bureau of Labor Statistics said Friday. That was more than triple what forecasters had expected, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The unemployment rate held steady at 4.1%, relatively low by historic standards.

The report added to evidence that the labor market is staying resilient against economic headwinds, including the rising fuel prices and frequently changing tariffs. Resilience, however, doesn’t mean it’s roaring ahead or that it’s easy for job-seekers to find work.

“We remain in a low-hire/low-fire job market, but overall, this report confirms that the job market is resilient,” Mike Fratantoni, chief economist at the Mortgage Bankers Association, wrote in a commentary.

What This Means For The Economy

The solid job market report for August showed no signs of deterioration, paving the way for the Federal Reserve to raise interest rates to fight inflation.

Employers have been reluctant to expand their payrolls due to economic uncertainty. Despite slower job creation than in the past, unemployment has remained low largely because fewer people are looking for work, due to an aging population and President Donald Trump’s crackdown on immigration.

Employment gains were largest in leisure and hospitality, which added 60,000 jobs, and in government, which added 35,000 jobs. Many of the gains were in local government education, the bureau said. Ahead of the report, economists at Pantheon Macroeconomics had forecast a bounce-back in that category due to seasonal adjustment issues in July’s data. The information sector took a hit, losing 23,000 jobs.

The steady job market makes the Federal Reserve more likely to raise interest rates at its next meeting in September. Fed officials have lost patience with inflation that’s run above the central bank’s 2% annual target since 2021 and has been pushed in the wrong direction by the Iran war’s fuel crunch.

As a result, pressure has been building on the Fed to raise interest rates, pushing up borrowing costs to subdue demand and put inflation in check. The odds of a September rate hike rose to 60% after the report, up from 49% before it was released, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

Signs of mass layoffs in the report could have discouraged such a move, since it would have threatened the Fed’s mandate to maintain full employment.

The surprisingly high job growth in August is helpful, but not enough on its own to change the dynamics of the deadlocked labor market, several economists said.

“While 162,000 jobs added last month is a strong number, it’s likely not strong enough to bring job seekers real relief,” Laura Ullrich, director of economic research for the Indeed Hiring Lab, wrote in a commentary. “But it is strong enough to possibly push the Federal Reserve to take its eye off the labor market and focus on inflation, giving them more confidence to potentially raise rates in coming months. And that, in turn, could have a further slowing effect on an already stagnant market.”

Lululemon shares plummeted 17% Friday.
Credit: Cheng Xin / Getty Images

Key Takeaways

• Lululemon shares tumbled Friday after the athletic apparel retailer missed revenue expectations and cut its full-year outlook.
• Interim co-CEO and CFO Meghan Frank said the company faced “negative commentary in the media and social channels.”
• New CEO and former Nike executive Heidi O’Neill is set to take the helm of the retailer next week.

Incoming Lululemon Athletica chief executive Heidi O’Neill has a number of challenges ahead of her.

Shares of Lululemon (LULU) dropped 17% Friday, a day after the athletic apparel retailer missed second-quarter revenue expectations and slashed its fiscal 2026 profit and revenue outlook.

The Vancouver, B.C.-based company now sees full-year earnings per share of $9.48 to $9.73, down from the prior range of $10.95 to $11.15, and revenue of $10.35 billion to $10.5 billion, down from a previous forecast of $11 billion to $11.15 billion.

Its second-quarter revenue declined 4% year-over-year to $2.42 billion and fell slightly short of Visible Alpha consensus estimates. EPS of $2.92—or $2.06 if you excluded an 86-cent tariff refund benefit—beat estimates.

Interim co-CEO and CFO Meghan Frank said on the earnings call that the company “faced negative commentary in the media and social channels,” according to an AlphaSense transcript. Frank added that “impacted traffic and softer-than-planned response to some new product launches, which contributed to a moderating sales trend.”

After the report, UBS analysts reduced their price target for the stock to $106 from $120, writing that they “don’t believe a pullback represents a good buying opportunity.” Deutsche Bank slashed its target to $98 from $127. Morgan Stanley analysts cut their price target to $83 from $93, telling clients that “we don’t think the reset is done.”

New CEO and former Nike (NKE) executive O’Neill is set to take the helm of the retailer next week. Lululemon shares have lost more than half their value since the start of the year.

This article has been updated since it was first published to reflect more recent prices.

News of the day for Sept. 4, 2026

Major stock indexes are on track to post modest weekly gains for the second consecutive week.
Credit: Michael M. Santiago / Getty Images

Stock futures are mixed ahead of fresh labor market data due this morning; the August jobs report will factor into the Fed’s decision later this month on interest rates; auto safety regulators said they’re looking into Tesla’s cybercab after a launch event yesterday; Lululemon shares are plunging after the retailer lowered its outlook; and Adobe named a new CEO. Here’s what you need to know today.

Major Indexes Are on Track to Post Weekly Gains

Stock futures are mixed and little changed as investors look forward to the government’s monthly jobs update (more on that below). Futures tied to the Dow Jones Industrial Average ticked 0.1% lower, while S&P 500 futures edged 0.1% higher. Nasdaq futures rose 0.5% as many memory and AI-related stocks climbed. All three of the major indexes gained yesterday for the second straight session, leaving them on track to post weekly gains, after Federal Reserve Governor Christopher Waller said he was prepared to support holding interest rates steady. The yield on the 10-year Treasury note was little changed recently at 4.76%. WTI oil futures ticked 0.7% lower to $90.70 per barrel, while gold futures fell slightly to $4,515 an ounce. The price of bitcoin last traded near $81,200, after the cryptocurrency topped $81,700 overnight.

Today’s Jobs Report Could Influence Fed’s Stance

The Bureau of Labor Statistics is scheduled to post its August jobs report at 8:30 a.m. ET, the outcome of which could influence the Federal Reserve’s decision on interest rates later this month. Investopedia’s Diccon Hyatt wrote the report is expected to show U.S. employers added 53,000 jobs last month, after the economy shed 23,000 jobs in July. Economists also estimate that the unemployment rate held steady at 4.1%, relatively low by historic standards. A report today that shows the labor market is stable would allow the Fed, which has a dual mandate to promote maximum employment and keep prices under control, to focus on inflation, which remains well above the central bank’s target. The monthly consumer price index, due next Friday, will also be critical for the Fed as it decides whether to raise its key interest rate.

Auto Safety Agency Looks Into Tesla’s Cybercab Safety Standards

The U.S. National Highway Traffic Safety Administration said it has opened a probe into Tesla’s cybercab “to examine the process and technical data on which Tesla relied when certifying the Cybercab and related issues.” Tesla yesterday hosted a launch event for its cybercab in Austin, Texas, where it has deployed driverless rides in a limited service area. Tesla has said it plans to gradually expand the service to more cities. Shares of Tesla were 3% lower in premarket trading, after adding nearly 6% in yesterday’s session ahead of the event.

Lululemon Stock Slumps on Lowered Outlook

Shares of Lululemon (LULU) are plunging after the athletic apparel retailer trimmed its outlook. The company said it now sees full-year revenue of $10.35 billion to $10.5 billion, down from a previous forecast of $11 billion to $11.15 billion. Its second-quarter sales at $2.42 billion fell slightly short of analysts’ estimates. Its earnings per share of $2.92 beat expectations, thanks in part to a $0.86 benefit from tariff refunds. Interim CEO Meghan Frank said the company has continued to grapple with “negative commentary” on social media and weak responses to new product launches, among other challenges. New CEO and former Nike (NKE) executive Heidi O’Neill is set to take the helm of the retailer next week. Lululemon shares were down 20% ahead of the opening bell, on pace to hit their lowest level since 2018.

Adobe Finally Names New CEO

After a yearslong slump for Adobe’s stock, will a new CEO be able to drive a comeback? The creative software giant late yesterday named Anil Chakravarthy its new CEO, ending months of speculation about who would succeed Shantanu Narayen after his plan to step down was announced back in March. Chakravarthy, who currently leads the company’s customer experience unit, is set to take over the role from Narayen starting in December. Adobe’s (ADBE) stock, which was down 4% in recent premarket trading, has lost roughly a fifth of its value this year amid worries about AI disruption and uncertainty about its leadership transition. Adobe is due to report its latest quarterly results next week.

Thursday’s gains brought Robinhood shares back into positive territory for the year.
Credit: Adam Gray / Bloomberg via Getty Images

Key Takeaways

• Robinhood shares surged to lead the S&P 500 higher Thursday.
• Other crypto-related stocks also rose as the price of bitcoin climbed.
• Several Wall Street analysts have upgraded Robinhood stock recently, pointing to its expanded offerings.

Robinhood’s stock led markets higher Thursday. Several Wall Street analysts say they’ve been growing more bullish on the stock lately. 

Shares of Robinhood (HOOD) jumped nearly 17% to finish Thursday’s session just under $125, making it the biggest gainer in the S&P 500 on a strong day for stocks and cryptocurrencies. Bitcoin last traded around $81,500, approaching its highest point since May.

Bitcoin’s performance often impacts Robinhood, which has expanded its crypto offerings in recent years. A number of other crypto-related stocks also rose, with Coinbase (COIN) and Mara Holdings (MARA) shares adding 10% and 11%, respectively. Strategy (MSTR), the single largest corporate holder of bitcoin, jumped close to 18%.

Favorable coverage from Wall Street may be helping lift optimism around Robinhood’s stock too, after upgrades from Morgan Stanley and Scotiabank, and a target hike from Piper Sandler. 

Earlier this week, Morgan Stanley analysts upgraded the stock to “overweight” and boosted their price target to $150 from $124, telling clients they see “continued asset growth and wallet share gains” for Robinhood thanks to its expanding product offerings.

Analyst Lance Jessurun of Scotiabank also launched coverage of Robinhood with an “outperform” rating and $136 target this week, suggesting that investors underestimate Robinhood’s growth potential. 

Piper Sandler yesterday raised its target to $145 from $135 while keeping an “overweight” rating. The analysts led by Patrick Moley pointed to Robinhood’s growing prediction markets revenue, which they expect to benefit from the upcoming start of the NFL and NCAA football seasons. 

Those three targets are all above the Visible Alpha consensus of $122, a level the stock has surpassed after its recent rally. With Thursday’s rise, Robinhood shares are back in the green for the year, though still well off their highs last October. 

Fed Governor Christopher Waller spoke this week, seemingly contradicting Fed Chair Kevin Warsh’s take on forward-looking communications.
Credit: David Paul Morris / Bloomberg via Getty Images

Key Takeaways

• Fed Governor Christopher Waller said it was valuable for Fed officials to explain how they would react to upcoming economic data and what would prompt them to adjust the central bank’s key interest rate,
• That’s in direct contrast to Fed Chair Kevin Warsh, who has criticized such communications.
• Waller said he would favor raising interest rates in September only if an upcoming report shows inflation running unexpectedly high.

Leaders at the Federal Reserve are debating how the central bank communicates with the public, and the outcome of their dispute could change the whole ball game for financial markets.

On Thursday, Federal Reserve Governor Christopher Waller defended the practice of explaining to the public what he thinks the Fed should do with interest rates if future economic data comes in a certain way. Such conditional statements were a staple of Fed communications under former chair Jerome Powell and some of his predecessors.

However, Fed Chair Kevin Warsh has avoided making them since taking office in May, and has repeatedly criticized the practice.

The Fed’s communication policy determines how much information the public receives about the Fed’s thoughts on the economy. At any given meeting of the Fed’s policy committee, officials could vote to raise the benchmark fed funds rate to push up borrowing costs throughout the economy and dampen inflation; lower it to encourage spending and boost the job market; or hold it steady.

Currently, policymakers are deciding whether to raise interest rates to push down inflation, which is still running above the Fed’s 2% annual target for a fifth year. Some “hawks” on the FOMC have spoken out in favor of a rate hike, while others have advocated a wait-and-see approach.

What This Means For The Economy

Financial markets could get less information about the Fed’s forthcoming moves if Kevin Warsh follows through on his criticism of the Fed’s communication to the public. That would add more uncertainty to all kinds of economic forecasts.

Waller, who is considered by experts a swing voter between those two groups, explained his own “reaction function” Thursday in a speech at an event with Reuters. He made it clear that his vote at the next meeting hinged on the forthcoming report on the Consumer Price Index inflation gauge for August.

“If there is continued progress toward our 2% goal, then I am willing to support holding the policy rate at its current level,” Waller said. “But if inflation comes in hot, I would consider a rate hike.”

Financial markets slashed their bets on a Fed rate hike in response to the comments, and stock prices rose as the chances of higher borrowing costs down the road diminished.

As of Thursday afternoon, it was down to a coin flip whether the Fed would raise rates at its next meeting, down from a 63% chance the day before, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

That’s just the kind of interaction Warsh said he wants to snuff out.

Warsh believes that signals from the Fed about its upcoming moves distort financial markets and can limit the Fed’s flexibility in responding to economic changes. That’s why he has moved to curtail “reaction function” statements, as well as their stronger cousin, “forward guidance,” in which Fed officials unambiguously state their plans for rate movements.

At a press conference in July, Warsh said markets should “play the ball, not the referee,” meaning reacting to economic data rather than what they expect the Fed to do.

“Many of you might be interested in our reaction function—we’re interested in the reaction of financial markets,” he said at a press conference in July. And later, at a landmark speech at the Jackson Hole conference, Warsh dissed reaction function statements once more.

Waller turned Warsh’s analogy around Thursday, comparing the Fed to a home plate umpire calling balls and strikes. Stating a reaction function, he said, is like declaring a strike zone.

“The players don’t expect the umpire to have a perfect strike zone—they just need a rough idea of its parameters and some guarantee that it won’t change much on every pitch,” he said.

Although Waller said he agreed with Warsh that it was inappropriate for the Fed to offer forward guidance in normal times, his philosophy on communication differs from that of the new Fed boss. Some experts saw Waller’s speech as a version of the “good family fight” that Warsh said he wants policymakers to have under his leadership.

“Gonna take a wild guess that Umpire Waller might not be Warsh’s fav version of Waller,” economist Claudia Sahm posted on the X social media platform.

Sahm, however, called foul on both central bankers, saying neither Warsh’s ref nor Waller’s umpire is a good analogy for what the Fed does.

“The Fed isn’t calling balls and strikes; it’s MAKING the play,” she wrote. “The Fed is LeBron, not the ref.”

Bitcoin surged on the possibility of the Fed holding rates steady at its upcoming meeting.
Credit: Photo by Joao Luiz Bulcao / Hans Lucas / AFP via Getty Images

Key Takeaways

• Bitcoin on Thursday hit nearly $81,400, its highest intraday level since May 15.
• Some crypto experts aren’t entirely convinced a bull market has started.

Bitcoin’s back to rallying.

The price of the world’s most well-known cryptocurrency retook $81,000—a level it’s been toeing for weeks—on Thursday, surging alongside major stock indexes. Risk assets appear to be getting a boost from Federal Reserve Governor Christopher Waller’s comment at a Reuters event that he’d support holding rates steady at the central bank’s upcoming meeting—assuming August inflation data continued progress seen in June and July.

Traders placed slightly higher odds, or roughly 50%, that the Federal Reserve would leave its target rate untouched at its meeting later this month, up from 40% yesterday, according to CME Group’s FedWatch tool.

Crypto markets flashed green following Waller’s comments, with bitcoin surging from overnight lows below $77,000. The cryptocurrency briefly touched nearly $81,400, its highest intraday level since May 15.

Though bitcoin has trailed U.S. stock benchmarks for much of the year, its climb over the past three weeks has helped narrow the performance gap. Bitcoin is now down just 7% year-to-date, while the S&P 500 has gained more than 10% over the same period.

Some crypto experts say it’s too soon to call it a bull market. “My base case is that Bitcoin may have formed an important local bottom, but the cycle turn remains unconfirmed,” Nicolai Søndergaard, Senior Research Analyst at Nansen, said in an emailed comment yesterday.

Meanwhile, the boost in bitcoin prices Thursday aided crypto-linked stocks, with Robinhood (HOOD), Strategy (MSTR), and Coinbase (COIN) notching double-digit gains.

Nvidia wants you to know it’s more than just a chip company
Credit: Benjamin Fanjoy / Getty Images

Key Takeaways

• Nvidia announced it’s acquiring AI platform Hugging Face for $12.93 billion.
• Hugging Face’s platform is used by over 200,000 companies for AI development and deployment.

Nvidia is buying Hugging Face for $12.93 billion, in a move to expand its reach in the AI ecosystem. 

The purchase will give Nvidia control over what’s become a leading platform for open-source AI development, and could help introduce Nvidia to new customers. More than 200,000 companies use the Hugging Face platform to “discover, evaluate, customize and deploy AI,” according to a release.

Nvidia (NVDA) CEO Jensen Huang said that the AI chip leader intends to “scale Hugging Face’s platform, strengthen its infrastructure and expand access to AI for developers and institutions worldwide,” which could bolster Nvidia’s efforts to grow its business beyond chips.  

Huang, who’s long told investors to think of Nvidia as more than just a chip company, has been talking up the company’s software offerings in recent months. Nvidia has also been working to make its mark in the world of physical AI capabilities, partnering with a number of autonomous vehicle makers and rideshare platforms to make its own self-driving software.

Nvidia has taken on an increasingly important role on the financial side of the AI industry as well—a concern for many investors worried about an AI bubble.

In a televised interview with CNBC this morning alongside Hugging Face co-founder and CEO Clem Delangue, Huang said the deal would help because “Nvidia benefits whenever AI advances.”

Nvidia shares climbed about 1.5% in recent trading, leaving them up over 20% from the start of the year.

Tyson Foods stock sank Thursday after it slashed its full-year outlook.
Credit: George Frey / Bloomberg via Getty Images

Key Takeaways

• Tyson Foods lowered its fiscal 2026 revenue growth forecast to 1.5%-2.0%, down from 2.5%-3.5%.
• The company expects significant losses in its beef segment due to volatile cattle prices and shortages.
• Tyson Foods shares dropped 7% after the revised outlook and are down 11% year-to-date.

Tyson Foods updated its fiscal 2026 outlook Thursday. Investors aren’t too pleased.

Shares of Tyson Foods (TSN) sank roughly 7% in morning trading after the meat giant reduced its full-year revenue growth and adjusted operating income projections, “primarily driven by significant margin compression amid volatile cattle prices and one of the most severe cattle shortages in U.S. history, as well as the expected impact of lower cattle prices on the value of live cattle inventories.”

Tyson Foods now sees fiscal 2026 revenue growth of 1.5% to 2.0%, down from the prior range of 2.5% to 3.5% growth, and total company adjusted operating income of $1.85 billion to $2.05 billion, lowered from $2.1 billion to $2.3 billion.

The Springdale, Ark.-based firm also lowered its adjusted operating income forecasts for its chicken and pork segments, and anticipates a wider adjusted operating loss for its beef segment.

“The beef pressures that have intensified this quarter reflect industry-wide cattle-cycle dynamics that required decisive action,” CEO Donnie King said.

Tyson Foods shares have lost 11% of their value since the start of the year.

Broadcom shares have pulled 30% off their June highs.
Credit: ruelleruelle / UCG / Universal Images Group via Getty Images

Key Takeaways

• Broadcom shares slid Thursday after the chipmaker issued an outlook that disappointed.
• The company’s quarterly sales and profits topped analysts’ estimates.

Broadcom shares are in the red this morning after the chipmaker gave an outlook that disappointed.

The AI chipmaker said after the closing bell yesterday that it expects fiscal fourth-quarter revenue to come in around $34.8 billion, below the $35.4 billion analysts were expecting. Shares of Broadcom (AVGO) were down 6% in recent trading, dragging the stock into negative territory for the year.

The company said it generated $29.59 billion in fiscal third-quarter revenue, narrowly topping the $29.49 billion consensus of analysts surveyed by Visible Alpha. Adjusted earnings came in at $3.32 per share, 8 cents ahead of estimates.

AI semiconductors made up $16.7 billion of Broadcom’s revenue in the third quarter, more than tripling year-over-year. CEO Hock Tan said demand for the company’s hardware “continues to be very strong.”

Tan told investors during last night’s earnings call that Broadcom has secured the supply to generate about $115 billion in AI sales next year, up from $100 billion previously, with the potential for AI revenue to double again and reach $230 billion in 2028. Shares slumped following Broadcom’s last report in June, in part because the company declined to raise that $100 billion revenue target.

UBS analysts said they don’t see the long-term forecasts as “fundamentally changing” the debate around Broadcom’s positioning, but noted that executives said the current targets could end up being conservative if Broadcom gets more supply than it is currently anticipating.

William Blair analysts wrote that Broadcom “continues to demonstrate that its best-in-class IP portfolio and strength in AI networking provide a durable competitive advantage,” while acknowledging that there will likely be some “disappointment” about its fourth-quarter outlook.

Thursday’s slide leaves Broadcom shares down about 1% for the year and 30% off their June highs.

This article has been updated since it was first published to reflect more recent prices.