Good Afternoon. On this day in 1967, Sweden switched from driving on the left side of the road to the right after years of planning, public education, and one carefully coordinated morning.

Wall Street changed lanes today, too. Stocks rose and bond yields eased as a Fed governor favored holding rates steady, while Nvidia’s $12.93 billion Hugging Face deal put an open-source AI community under new ownership. Tomorrow’s jobs report will test whether investors can keep moving in that direction.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

🔢 Big number: $12.93 billion — Nvidia’s agreed purchase price for Hugging Face. The deal would give the chip leader a widely used open-source AI platform, but keeping that community’s trust may matter as much as owning the technology.

Nvidia agreed to buy Hugging Face, the platform where developers share AI models, datasets, and tools. The purchase would bring a major open-source hub inside the world’s dominant AI-chip company, so the strategic fit is obvious—but the community’s independence can’t be treated like an ordinary acquired asset.

The news: Nvidia will pay $12.93 billion, while Hugging Face employees would receive another $1 billion in retention compensation. Hugging Face says it’ll remain open source and hardware-agnostic, even as Nvidia gains a direct relationship with millions of developers who use the platform to build and distribute AI software.

Bottom line: Nvidia isn’t only buying code; it’s buying distribution, developer attention, and a trusted neutral meeting place. If users think the platform now favors Nvidia hardware or restricts access, that value could erode. Watch governance, pricing, and support for competing chips because openness has to remain visible, not merely promised.

Source: Associated Press

U.S. markets rose as oil stabilized and Federal Reserve Governor Christopher Waller said policymakers can hold rates steady while they assess inflation. Investors didn’t receive an all-clear; they received permission to focus on tomorrow’s employment report instead of assuming another rate increase is already on the way.

The news: The S&P 500 was up close to 1.1%, the Dow gained roughly 1.2%, and the Nasdaq rose near 1.5% in afternoon trading. The 10-year Treasury yield slipped to about 4.76%, while unemployment claims didn’t signal a broad rise in layoffs. Oil stayed near $96 a barrel as markets continued weighing Iran-related supply risks.

What’s next: Friday’s jobs report can quickly change the mood. Strong hiring could revive concern that demand is too firm for inflation to cool, while a weak number could help bonds but raise questions about spending. Businesses shouldn’t build plans around a single rate meeting when employment, oil, and next week’s inflation report can still move the path.

Source: Associated Press

Broadcom’s AI business more than tripled from a year ago, yet its shares fell because investors had already priced in an exceptional outcome. That’s the difficulty of leading a boom: revenue can accelerate dramatically while the market still asks whether next quarter will be even stronger.

The news: Fiscal third-quarter revenue reached $29.6 billion, up 86%, while AI semiconductor revenue climbed 221% to $16.7 billion. Free cash flow was $13.7 billion, or 46% of revenue. Broadcom’s fourth-quarter outlook calls for about $34.8 billion of revenue and a non-GAAP operating margin near 66%.

Big picture: Custom accelerators and networking remain essential to the AI buildout, but they’re supporting a rich valuation that makes the forecast more important than the quarter already completed. Readers should watch customer concentration, the mix between chips and infrastructure software, and whether free cash flow keeps scaling with revenue. Growth is powerful; expectations are the harder comparison.

Source: Broadcom

The Campbell’s Company reduced its dividend as weak organic sales and lower profit left management prioritizing debt reduction. Cutting a shareholder payment is painful, but preserving a larger dividend while leverage stays high wouldn’t make the underlying business healthier.

The news: Quarterly net sales fell 8% to $2.1 billion, with organic sales down 1%. Adjusted operating earnings dropped 25%, and adjusted earnings per share didn’t fare better, falling 37%. Campbell cut its quarterly dividend to $0.25 from $0.39 and expanded its cost-savings target to $500 million by fiscal 2030.

Bottom line: Cost cuts can create breathing room, but they can’t replace demand indefinitely. Campbell needs its meals and snacks brands to hold volume while management pays down debt and protects investment behind the products. Watch organic sales, pricing, and cash flow because a smaller dividend only works if the retained cash produces a stronger company.

Source: The Campbell’s Company

Victoria’s Secret delivered faster sales and much stronger operating profit, but its shares fell as investors looked beyond tariff refunds and the completed quarter. Retail turnarounds aren’t judged only by whether a company beat yesterday’s estimate; they’re judged by how much durable demand survives into the next season.

The news: Second-quarter sales rose 10% to $1.61 billion, comparable sales increased 9%, and operating income reached $257 million. Results included more than $140 million of tariff refunds, which weren’t included in the company’s adjusted figures. Full-year sales are now expected between $7.10 billion and $7.18 billion.

What’s next: Management has improved products and marketing, but consumers remain selective and the tariff benefit won’t repeat every quarter. Investors should separate recurring operating progress from one-time help, then watch holiday inventory and promotions. A healthier brand can still disappoint when the stock price assumes that every part of the recovery arrives on schedule.

Source: Victoria’s Secret & Co.

Canada’s merchandise trade surplus nearly disappeared in July as exports fell and imports rose. The headline matters, but the composition matters more: shipments to the United States dropped sharply while exports to other countries reached a record, showing diversification is helping without fully replacing the neighboring market.

The news: Exports declined 2.3%, imports increased 2.2%, and the trade surplus narrowed from $4.2 billion to $769 million. Exports to the United States fell 6.6%, cutting Canada’s surplus with its largest partner to $5.9 billion. Exports elsewhere rose 7.4% to a record $25.6 billion.

Big picture: New overseas customers can reduce concentration, but longer routes add logistics, currency, and financing risks. Canadian businesses should keep expanding non-U.S. relationships while protecting access to the market next door. One record month outside the United States doesn’t erase dependence; it does show where the next layer of resilience can be built.

Source: Statistics Canada

Germany’s economy is finally moving out of its cyclical slump, according to the Kiel Institute, but the forecast doesn’t confuse a rebound with a repair. Extra working days and improving exports can lift this year’s number while energy costs, weak productivity, and aging infrastructure continue limiting what follows.

The news: Kiel raised its 2026 growth forecast by half a percentage point to 1.3%, with about 0.3 percentage point attributed to additional working days. It doesn’t expect growth to hold that pace, forecasting 1.0% in 2027 and 0.5% in 2028. German goods exports remain near their 2019 level even though global trade has expanded roughly 18%.

Bottom line: Fiscal support can bridge a weak patch, but it can’t permanently substitute for investment and competitiveness. Germany needs faster permitting, dependable energy, and better capital formation if the recovery is going to outlast the calendar effect. Companies should plan for modest demand and keep watching the Rhine, where low water is already disrupting freight.

Source: Kiel Institute for the World Economy

Britain’s services sector expanded at its fastest pace in several months, offering evidence that activity regained momentum after a weak second quarter. The improvement isn’t cost-free: businesses also reported stronger input-price pressure, leaving the Bank of England with the familiar problem of supporting growth without encouraging inflation.

The news: The final S&P Global services purchasing managers’ index rose to 52.5 in August from 52.1 in July, its strongest reading since April. A reading above 50 signals expansion, though it doesn’t reveal the full cost picture. New work improved, but higher wages, transport costs, and energy expenses pushed cost inflation higher.

What’s next: Services strength can support hiring and consumer activity, yet faster cost growth makes near-term rate relief less certain. British companies should test whether customers will absorb price increases or force margins to take the hit. The Bank of England will need several reports—not one better survey—to know whether the economy is accelerating safely.

Source: Reuters

Q: What did the ocean say to the beach?

A: Nothing, it just waved.

Tracking error: the difference between a portfolio’s return and the return of the benchmark it’s designed to follow.

In a sentence: A portfolio that doesn’t own much Nvidia or other mega-cap technology can develop tracking error when a handful of companies drives the index higher.

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