Live Nasdaq Composite: Markets Take a Breather amid Stellar AI Earnings Cycle

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PANW Stock Falls

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Palo Alto Networks (NASDAQ:PANW | PANW Price Prediction) is trading lower in premarket action despite delivering a Q3 report that cleared expectations across the board. Revenue came in at $3.0 billion against the $2.94 billion estimate for a 31% year-over-year gain, while adjusted EPS of $0.85 topped the $0.80 consensus. Next-Generation Security ARR  reached $8.1 billion, up 60% year over year, and remaining performance obligations climbed 36% to $18.4 billion, reflecting a healthy pipeline of committed future revenue. FY guidance was raised above Street expectations on both the top and bottom lines, with the company projecting revenue of $11.42 billion to $11.43 billion versus the $11.29 billion estimate and adjusted EPS of $3.77 to $3.79 against a $3.70 consensus. The premarket pullback to around $290.50 appears to reflect a market that had already priced in a strong quarter rather than any fundamental concern with the results.

This article will be updated throughout the day, so check back often for more daily updates. 

The markets are cradling all-time highs, though futures are offering little conviction heading into the open. Nasdaq Composite and S&P 500 futures are hugging the flatline in early trade, while Dow futures are slipping about 180 points, or 0.3%, as a fresh round of Middle East headlines keeps traders from leaning too hard in either direction. Oil prices are rising, with WTI Crude up 2.7% to over $96/barrel. JPMorgan has reportedly increased its S&P 500 target in response to what it has described as an earnings “supercycle” due to robust AI demand.

Overnight developments are injecting a note of caution into the market backdrop. President Trump said Iran had agreed to forgo nuclear weapons, though he left the door open by adding that the country could change course, a qualifier that markets will be watching closely as ceasefire negotiations continue to hang in the balance.

On the economic front, private payrolls grew by 122,000 in May, topping the 110,000 consensus estimate and marking the strongest month of hiring since January 2025, according to ADP. Notably, gains were broad-based across eight of the ten sectors tracked, a shift from recent months when job growth had been concentrated largely in healthcare.

Here’s a look at where things stand as of pre-morning trading:

Dow Jones Industrial Average: 51,169 Down 0.45%
Nasdaq Composite: 30,726 Up 0.04%
S&P 500: 7,607 Down 0.21%

Market Movers

Marvell Technology (NASDAQ:MRVL) is adding to an already historic run, advancing more than 13% in premarket trading Wednesday on the heels of its best single session on record Tuesday, when the chipmaker vaulted 32%. The back-to-back move is cementing Marvell’s status as one of the market’s defining AI trades of the moment.

Netflix (NASDAQ:NFLX) is one of the market’s more puzzling disconnects right now. The stock is down more than 8% year to date, trailing the S&P 500 by 20 percentage points and lagging the Nasdaq by 30, yet the underlying business tells a meaningfully different story. Shares are trading right around the same $83 level they occupied in Q4 2024, but earnings per share have climbed from $1.99 to $3.10 over that same stretch, a 56% improvement in profitability that the stock price has entirely failed to reflect.

Novo Nordisk (NYSE:NVO) is expanding its weight-loss franchise beyond U.S. borders, launching its oral Wegovy pill in the United Arab Emirates in what marks the drug’s first international rollout outside the United States.