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• 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.

News of the day for Sept. 3, 2026

Stock futures are little-changed this morning after major indexes closed higher yesterday for the first time in four sessions; Snowflake shares are surging after the database software provider reported strong results and raised its outlook; Broadcom shares are moving lower after the chipmaker issued disappointing guidance; Tesla is scheduled to host a Cybercab event today to showcase its driverless robotaxi; and Petco shares are rallying after a better-than-expected earnings report. Here’s what you need to know today.

Stock futures are steady Thursday as investors digest tech earnings reports and brace for tomorrow’s highly anticipated jobs report. Dow Jones Industrial Average futures were up 0.2% recently, while futures tied to the benchmark S&P 500 hovered near unchanged and Nasdaq futures slipped 0.2%. Each of he major indexes gained yesterday, snapping three-session losing streaks that were spurred in part by concerns about inflation as tensions in the Iran war reignited. WTI crude oil prices were up 2% this morning at $93 per barrel, hitting their highest level in more than a month, as the Middle East fighting continued. Gold futures were up 1.7% to $4,490 an ounce, while bitcoin rose slightly to $78,000. The 10-year Treasury yield ticked lower to 4.77% after hitting 4.82% yesterday, its highest level since late 2023.

Shares of Snowflake (SNOW) are soaring this morning after the data software provider’s earnings handily topped estimates last night. The company reported adjusted earnings of 62 cents per share on $1.55 billion in revenue, each better than expected, and also lifted its full-year sales forecast. Snowflake said its new AI features are continuing to drive substantial demand. Shares were up 23% to $375 in recent premarket trading, putting them on track to hit their highest point since November 2021, when the stock peaked at a close of roughly $402. Investors are growing accustomed to a big post-earnings move for the stock, which soared more than 35% the day after Snowflake’s last report in May.

Broadcom (AVGO) shares are in the red this morning after the chipmaker turned in its latest quarterly results. After last night’s closing bell, Broadcom said it generated $29.59 billion in fiscal third-quarter revenue, narrowly topping the Visible Alpha analyst consensus, along with adjusted earnings of $3.32 per share, which was 8 cents ahead of estimates. The chipmaker’s fiscal fourth-quarter projection of $34.8 billion in revenue came in below the $35.4 billion that analysts were looking for. AI semiconductors made up $16.7 billion of Broadcom’s revenue in the third quarter, more than tripling year-over-year. Broadcom shares were down nearly 4% ahead of the opening bell, which would put them nearly back to where they started the year.

Investors will get a new look at one of the key pieces of Tesla’s (TSLA) ongoing transformation today, as the company hosts an event in Austin, Texas centered around its driverless Cybercab. The autonomous vehicle, designed with no pedals or steering wheel, was first unveiled as part of a robotaxi event back in October 2024. The vehicles have been seen being tested on the road in recent months with a steering wheel and safety driver, and it remains unknown whether Tesla’s Thursday event will simply be a new look at the Cybercab or the announcement of a plan to roll them out and add them to the expanding robotaxi fleet, a key part of CEO Elon Musk’s goals. Tesla shares, which rallied in August but remain about 20% below where they started the year, were up 1% in premarket trading.

Petco (WOOF) shares are rallying this morning after the pet supplies retailer posted better-than-expected earnings. Petco posted $1.49 billion in second quarter revenue, in line with estimates, along with earnings of 13 cents per share, well ahead of the 3 cents analysts had been expecting. The company became the latest to report a boost in profits thanks to tariff refunds from the Trump administration. The retailer maintained its full-year outlook of flat to 1.5% sales growth, along with plans to close 15 to 20 of its more than 1,300 stores as part of the company’s turnaround effort. Petco shares were up 11% premarket, on track to move back into positive territory for the year.

The end of the summer trading holiday schedule is nearly here, with investors set to get a break to mark the unofficial end of summer.

Stock and bond markets will close on Monday, Sept. 7, for the Labor Day holiday.

After that, there aren’t any scheduled trading breaks before Thanksgiving. The rest of the schedule headed into the start of 2027 is:

• Thursday, Nov. 26: Stock and bond markets will close for Thanksgiving. The stock market will close at 1 p.m. ET on Friday, Nov. 27, while bond markets will close at 2 p.m.
• Friday, Dec. 25: Stock and bond markets will close for Christmas. The stock market will close at 1 p.m. ET on Thursday, Dec. 24, for Christmas Eve, while bond markets will close at 2 p.m.
• Friday, Jan. 1: Stock and bond markets will close for New Year’s Day. Bond markets will close at 2 p.m. ET on Thursday, Dec. 31, for New Year’s Eve.

• The U.S. economy increasingly depends on the buildout of data centers, according to the Federal Reserve’s “Beige Book” report.
• Mentions of data centers have surged from one in September 2024 to 25 in the most recent edition.
• Data centers are fueling a construction and power-generation boom while creating jobs in other industries, such as legal services.

The U.S. economy is increasingly organized around constructing data centers and the infrastructure to support them, whether the public likes it or not (and it doesn’t).

The Federal Reserve’s “Beige Book” report, released Wednesday, offers a ground-level look at how the data centers sprouting up everywhere are affecting different regions. Anecdotal reports from across the country say the data centers are sucking up metal, materials, computer chips, and electricity, and spitting out AI services that businesses are increasingly leaning on.

Data centers were mentioned 25 times across the report. That’s up from eight in September 2025 and just one in September 2024.

The Beige Book compiles anecdotal reports from local business, community, and government leaders across the Federal Reserve’s 12 districts. This edition shows that while the economy is growing only modestly overall, data center demand is powering much of the recent growth.

Data center development is supporting construction and manufacturing, tightening some labor markets, boosting demand for legal and shipping services, and reshaping the power industry. That means far more of the U.S. economy relies on the fortunes of one industry than it did just a couple of years ago.

Spending on data center construction—not counting the computers that go in them—grew to a $75 billion annual rate in July, a 57% increase from July 2025, the Census Bureau said in a separate report out Tuesday. The data center buildout accounted for all of the nonresidential construction growth recorded that month, according to an analysis by Associated Builders and Contractors, a trade group.

Fed contacts in several districts said that data center work was supporting local construction and manufacturing.

“Without data centers, construction would be in a recession,” one contact in Chicago said.

It’s not just construction benefiting from the boom: legal services firms in the Richmond district said they were getting lots of work supporting the industry.

Another contact in the New York district said data center projects were importing large amounts of supplies from China.

In Maryland, construction companies are in a fierce competition for workers as they pursue data center contracts—one firm raised wages 35% across the board.

In Virginia, the nation’s data center capital long before anyone had heard of ChatGPT, some contacts said they worried that local moratoriums on data centers could slow construction and capital investment.

The boom is also affecting power companies, which have scrambled to meet the surge in electricity demand. A section of the Fed report on the Kansas City district described how data center builders are emphasizing speed over cost, even constructing their own power plants to supply their projects.

• Snowflake shares jumped after the company reported better-than-expected earnings on strong AI demand.
• The AI data cloud company also raised its full-year outlook.

Snowflake stock is surging on signs that enterprise AI demand is driving big gains for its business.

Shares of Snowflake (SNOW) were up more than 20% in premarket trading Thursday, a day after the AI data cloud company posted quarterly results that topped analysts’ estimates and raised its outlook.

The company reported adjusted earnings per share of $0.62 for its fiscal 2027 second quarter, on a 35% year-over-year rise in revenue to $1.55 billion. Those numbers were well above the adjusted EPS of $0.45 on revenue of $1.48 billion that analysts surveyed by Visible Alpha expected.

CFO Brian Robins said in a release that Snowflake saw a “meaningful step-up in AI revenue.” The company said it netted 692 new clients in the quarter, including 14 Forbes Global 2000 businesses.

“AI continues to compound our advantages, creating a flywheel effect across the business,” CEO Sridhar Ramaswamy said.

Snowflake projected current-quarter product revenue of between $1.588 billion and $1.593 billion, which would represent up to 38% growth. It lifted its full-year product revenue forecast to $6.07 billion from $5.84 billion previously.

Snowflake shares were up nearly 40% for the year through Wednesday’s close.

CORRECTION AND UPDATE: This article has been updated to reflect more recent prices and correct an earlier version that incorrectly stated the stock was on track to hit a record high.

• Berkshire Hathaway CEO Greg Abel told CNBC in an interview Wednesday that Alphabet’s strength in AI was a “fundamental” reason behind the decision to invest in the tech giant.
• Legendary investor Warren Buffett, who stepped down from his role as Berkshire’s CEO at the end of last year, initiated the investment.

Google’s position as a “significant player” in AI was a “fundamental” reason behind Berkshire Hathaway’s decision to invest in the tech giant, according to CEO Greg Abel. 

“We knew it was going to have a significant impact on America and businesses” by watching how the spread of AI is influencing Berkshire’s subsidiaries, the CEO said in a televised interview with CNBC Wednesday.

The conglomerate’s stake in Google parent Alphabet (GOOGL, GOOG), which was initiated by legendary investor Warren Buffett, is the third-largest holding in Berkshire’s (BRK.A, BRK.B) portfolio. Berkshire first revealed its stake last November, when Buffett was in his final months as CEO. Abel took over the role at the start of the year. 

Abel said he was approached earlier this year about participating in the Google parent’s $80 billion stock offering to raise funds for its AI buildout, and settled on investing another $10 billion. Berkshire has grown its stake to about 106 million shares as of the end of the second quarter, according to a regulatory filing last month. At Wednesday’s closing prices, the investment would be worth about $35.64 billion.

Alphabet and Berkshire shares climbed less than 1% Wednesday on a broadly positive day for markets. Alphabet shares are up about 8% for the year, but well off their May highs. Berkshire shares have added just 0.5% in 2026 so far, having pulled back in the wake of the company’s earnings report last month.

• Forecasters expect the Bureau of Labor Statistics to report that the U.S. economy added 53,000 jobs in August, making up the ground it lost in July when employers shed 23,000 positions.
• Economists anticipate the market staying in its recent limbo of low hiring and few layoffs.
• A report in line with expectations would signal the job market is stable enough for the Fed to consider hiking interest rates to counteract inflation without fear of stoking unemployment.

The job market may not have exactly bounced back in August, but it likely limped forwards a little after the setback it suffered in July.

A report Friday from the Bureau of Labor Statistics is expected to show U.S. employers added 53,000 jobs last month, after shedding 23,000 jobs in July, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The unemployment rate is expected to stay at 4.1%, relatively low by historic standards.

If forecasts are on target, it would add to recent evidence the labor market is stuck in a low-hiring, low-firing mode, with employment being relatively stable for people who already hold positions, but relatively difficult for job-seekers. Uncertainty from tariffs and the Iran war, as well as high borrowing costs, have made many businesses put expansion plans on hold, although there have been few signs of mass layoffs. The unemployment rate has stayed low largely because the U.S. needs to create fewer jobs than it used to due to the decline in immigration during President Donald Trump’s second term.

The job market has entered a new era of slow job growth compared to the post-pandemic boom, although this has not translated into high unemployment. An August jobs report that shows a continuation of that trend could help pave the way for the Federal Reserve to raise interest rates to tame inflation.

Wednesday’s report could be important for the Federal Reserve, whose policy committee meets later in the month to decide whether to raise interest rates to control inflation as it aims to fulfill its dual mandate to keep employment high and consumer prices stable. Fed officials have been watchful for signs of the job market deteriorating, and the hiring slowdown turning into a firing spree. The steadier the job market remains, the more breathing room the Fed has to raise rates to counteract inflation.

“When we triangulate across all the labor market data that will be released this week, we’re expecting that the labor market will be room temperature, rather than boiling or frozen,” BeiChen Lin, senior investment strategist at Russell Investments, wrote in a commentary. “And that would be good news for the Fed.”

However, if the report shows fewer job gains than expected, or a rise in the unemployment rate, Fed officials could be more reluctant to hike rates

“The dilemma the Fed could find itself in is having to choose between stubborn inflationary pressures and a deteriorating labor market, after last month’s official jobs data revealed a surprise contraction in employment,” Kyle Rodda, senior financial market analyst at Capital.com, wrote.

Some forecasters estimate that the U.S. economy added far more jobs than the consensus forecast. Economists at Pantheon Macroeconomics, for instance, chalked up the July decline in employment to a seasonal adjustment issue for local education payrolls rather than a real weakening of the labor market, which would reverse itself in the August data, leading the economy to add 125,000 jobs, more than double the consensus forecast.

• Bank stocks in the U.S., as well Canada, Japan and other countries around the world have surged in recent months.
• Expectations of rising interest rates in many of the world’s largest developed economies have helped fuel the rise, along with worries about an AI bubble.

Investors are taking their money to the banks. 

The Invesco KBW Bank ETF (KBWB), which was up about 1% in Wednesday afternoon trading, hit a series of record highs in August as investors piled into big bank stocks. The ETF is up about 14% year-to-date, slightly outpacing the S&P 500’s 12% gain. 

In neighboring Canada, bank stocks have been performing even better. The S&P/TSX Composite bank sector index has added roughly a quarter of its value in 2026, while the broader Canadian index has climbed about 14%. 

The recent performance of bank stocks in Japan, as well as markets in Europe, paint a similar picture, as expectations of rising rates in many of the world’s largest economies, along with worries about AI, have many investors around the world reaching for bank shares. 

Expectations of rising rates in the U.S., Canada and elsewhere to control inflation in the face of a global energy shock have played a major role in fueling investors’ recent support for banks. When rates rise, banks stand to boost profits as the spread between what they are able to earn on assets and pay on deposits widens. 

If rates rise so much that consumers and businesses pull back borrowing and the economy contracts, however, that could dent the outlook for banks. Resilient consumer spending in the U.S. and other economies around the world has so far staved off the worst of those worries.    

Strong trading volumes have also helped, in the face of heightened volatility. In the U.S., JPMorgan (JPM), Goldman Sachs (GS) and Bank of America (BAC)—which each saw trading revenues surge at least 70% from a year ago—crushed Wall Street analysts’ estimates when they reported quarterly earnings in July, as did other big American banks. 

Big Canadian banks, including Royal Bank of Canada (RBC) and Toronto-Dominion Bank (TD), also beat estimates across the board when they reported earnings last month, in large part as trading and deals surged. 

Momentum in the IPO market in the U.S. and globally, as well as a surge in M&A activity across several regions has also been a boon for banks, as it can boost underwriting and advisory fees. Banks have also benefited from tech giants turning to banks to help finance their AI data center infrastructure buildout.

Analysts at Wells Fargo told clients in a recent note that they see a continuing “trickle-down effect” for banks from AI investments, along with strong capital spending trends not tied to AI activity. “AI capex is broadening into the industries that supply, power and finance it, setting up the best commercial lending backdrop in over a decade,” they wrote. 

Investors seeking lower-risk alternatives to the AI trade may also be helping fuel the banking sector’s rise, analysts at Goldman Sachs and other firms have suggested. In the case of an AI fallout, banks would still likely see strong performance and could outperform broader markets as they did in the aftermath of the dot-com bubble, chief economic adviser at Capital Economics John Higgins suggested in a July note. 

Banks are in a “sweet spot,” according to Wells Fargo. “The biggest risk is interest rates remaining materially higher than expected, which could limit borrowing demand.”

• Palo Alto Networks shares fell 10% despite beating analysts’ revenue and earnings estimates for Q4.
• Investors were disappointed by the company’s conservative fiscal 2027 outlook, despite strong cybersecurity demand.
• The stock remains up 75% year-to-date, even after Wednesday’s decline.

Palo Alto Networks shares are tumbling Wednesday even though the cybersecurity software maker’s fiscal fourth-quarter results beat analysts’ estimates.

Palo Alto Networks (PANW) stock was down 10% in recent trading to $325 as investors may have been looking for more from the company’s latest earnings report. After last night’s closing bell, Palo Alto Networks reported Q4 revenue of $3.41 billion and adjusted earnings of $1.02 per share, each narrowly topping the Visible Alpha consensus of $3.35 billion and $0.98 per share.

The company forecast fiscal 2027 revenue of $14.1 billion to $14.2 billion and adjusted EPS of $4.16 to $4.19, both of which topped estimates. Morgan Stanley analysts said the outlook was one of their few concerns with the report, as they saw it as more conservative than expected considering the bullish environment around cybersecurity.

Still, the analysts lifted their price target to $394 from $387 as they said the cybersecurity industry is “still early in the journey of addressing cyber needs to protect against, and enable, AI.” Bank of America analysts said that Palo Alto’s “elevated expectations likely had investors looking for a stronger result to drive a more positive stock reaction,” attributing the decline to high expectations rather than concerns with the company’s execution.

Palo Alto Networks shares had rallied to record highs in the weeks leading up to Tuesday’s report as developments in AI models have led companies to prioritize spending on cybersecurity to protect their data. Shares surged last week after strong results from rival CrowdStrike (CRWD), but Wednesday’s slump has more than erased those gains.

CrowdStrike shares are also down 5% Wednesday on a mixed day for tech stocks.
Alongside last night’s earnings report, Palo Alto Networks announced its acquisition of AI firm Console, the latest in a string of deals as it looks to boost its AI capabilities.

Even with Wednesday’s pullback, Palo Alto shares are still up about 75% so far this year.

• MongoDB’s quarterly revenue grew 30% year-over-year, with adjusted earnings per share nearly doubling.
• The company raised its full-year forecast, driven by growth in its Atlas platform.
• Despite the strong results, MongoDB’s stock plunged Wednesday.

MongoDB’s quarterly results topped analysts’ estimates last night, but its stock is tumbling Wednesday.

The database provider reported second-quarter revenue of $771.8 million, up 30% from a year ago, while adjusted earnings per share nearly doubled to $1.90. Both easily topped consensus projections of analysts surveyed by Visible Alpha.

The company also lifted its full-year forecasts, noting that most of the second-half growth that led to the raised outlook is due to the growth of its Atlas platform.

Investors may have been simply hoping for more, or looking for broader growth than just relying on Atlas after the stock rallied nearly 30% since the start of August through Tuesday’s close.

MongoDB (MDB) shares were down 14% recently, dragging them back into negative territory for the year.

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