AI, Earnings and the Fed Drive the Market 9/3/26

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**Mike Santoli** (1:01)
The bell is bringing an end to the trading day. At the NYSE, fans for the Cure are ringing the bell. And at the Nasdaq, it's Tactical Resources closing out the day. Welcome to Closing Bell Overtime live from Studio B at the Nasdaq Market site. I'm Mike Santoli, Melissa Lee has the day off. Stocks higher across the board as software shines and yields fall. The Dow up 600 points, the S&P 500 higher by 1 percent, the Nasdaq Composite and the 100 both up more than 1 percent, bond yields and oil both were subdued today. The 10-year yield coming off its highs as Fed Governor Waller indicates, he leans toward voting-keeping rates unchanged at the next meeting in a couple of weeks. More on that to come. Once again, we're watching earnings. Lululemon due out this hour as our Zscaler, Samsara and DocuSign. Let's get more on today's market gains. And Seema Modi has a detailed Seema.

**Seema Modi** (1:52)
Mike, the Nasdaq was the standout today at 1.4 percent. Tech led the way with all magnificent seven names trading higher. Following NVIDIA's $13 billion deal to buy, hugging face beyond NVIDIA. Broadcom led chips lower as investors questioned the size of its quarterly earnings beat. Some of the semiconductor names like Texas Instruments, Advanced Micro Devices, Qualcomm trading down about 1 percent on the day. Different picture for software, which got a jolt from Snowflake's Strong Guide, accelerating revenue picture. Bank of America raising its price target to $470.
The stock ending higher by 16.5 percent results once again, easing fears around AI displacement. Check this out, the IGV software ETF up about 20 percent from that June 25th low, whereas the semiconductor ETF has declined during that same time period by around 16 percent. Elsewhere, Bitcoin bouncing higher, reclaiming that 80,000 level on Thursday, fueling gains in names like Robinhood, Coinbase, and Circle, which was up by 16 percent. Food stocks did not fare well. Campbell Soup saw profits decline and its dividend cut. Tyson lowered sales outlook due to pressure on beef prices. And this as we count down to Tesla's CyberCab event, where it's expected to unveil a new two-seater tonight. Stock is on track for its best week since early May, Matt, Mike.

**Mike Santoli** (3:13)
All right, yeah, two-seater with supposedly no steering wheel. We'll see what we get. Seema, thank you very much. Let's get more on NVIDIA's purchase of Hugging Face. Christina Partinevalos joins me now to explain it all. Christina.

**Christina Partinevalos** (3:23)
Well, the company that powers the AI boom, NVIDIA, just paid nearly $13 billion for insurance against it. NVIDIA is buying Hugging Face, the open-source AI platform in its second biggest deal ever. NVIDIA's fortune today rides on a few giant customers, frontier labs like OpenAI, Anthropic, plus a handful of hyperscalers, all spending on its chips to build expensive, mostly closed AI models. The risk is that the world moves on towards open models that are essentially free to download, sometimes cheaper to run and catching up fast, many of them from China. Hugging Face is how NVIDIA wins either way. It's the home of open-source AI.
More than 3 million models used by 18 million developers. So if companies and governments start building their own AI instead of renting from the big labs, NVIDIA now owns the place where they go to do it. Here's how CEO Jensen Wong explained it on CNBC this morning.

**Jensen Huang** (4:19)
Our fundamental goal is just to make sure that AI advances as quickly as possible. And it's really, really important right now as the open models are really accelerating, that we make sure that we provide Hugging Face the platform to continue to scale, and for the resource for them to scale and extend the open model ecosystem and community.