TLDR
- The Dow rose 0.28%, the S&P 500 gained 0.7% and the Nasdaq jumped 0.82% on Monday.
- Anthropic’s IPO filing showed $16.29 billion in revenue for the six months ended June.
- The iShares Semiconductor ETF rose nearly 3%, led by Nvidia, Micron, Broadcom and Advanced Micro Devices.
- Alphabet and Microsoft report earnings Wednesday, the same day as the Fed decision.
- Fed funds futures show a 90% chance rates hold at 3.75% to 4%.
US stocks rose on Monday as chip makers rallied. Anthropic’s public IPO filing renewed interest in artificial intelligence stocks.
The Dow Jones Industrial Average added 146.42 points, or 0.28%, to close at 52,361.58. The S&P 500 gained 0.7% to 7,676.77.
The Nasdaq Composite rose 0.82% to finish at 26,169.38. Both the S&P 500 and the Nasdaq are coming off two straight weekly losses.
Anthropic Filing Lifts AI Shares
Anthropic reported $16.29 billion in revenue for the six months ended June. That is up 1,304% from $1.16 billion a year earlier.
The company behind Claude plans to list on the Nasdaq. Investors are hoping the offering will bring new life to the tech sector.
Jay Woods, chief market strategist at Freedom Capital Markets, said the market needed the news. He expects strong demand because people have waited a long time for this IPO.
The iShares Semiconductor ETF rose nearly 3%. Nvidia climbed 2.4%, Micron gained 3%, Broadcom rose 2.3% and Advanced Micro Devices jumped 2.8%.
Chipmakers remain in a bear market. The semiconductor ETF is down about 25% from its high and 13% this month.
Meta Platforms said it plans to raise $95 billion for its AI spending. Elon Musk said SpaceX closed a $40 billion debt deal for AI chips.
Neocloud stocks also bounced. CoreWeave rose almost 2% and Iren gained 2.1%, even after Musk said more than 200 companies in the space face “guppy-level death.”
Falling oil prices also helped the major averages. Brent futures fell 0.8% to $115.81 a barrel, while West Texas Intermediate slid 1.7% to $101.57.
Brent hit its highest level since April on Friday. That followed reports that the US and Israel could be planning strikes on Iran after the midterm elections.
Earnings and Fed Decision Ahead
This is the peak week for earnings, with 163 S&P 500 companies set to report third quarter results. UPS, Coca-Cola, Visa and Boeing report on Tuesday.
Alphabet and Microsoft report on Wednesday. Amazon is also expected to report this week, following Meta’s results last week.
The Federal Reserve begins a two-day meeting on Tuesday. Fed funds futures show a 90% chance that rates will hold at 3.75% to 4%.
On Tuesday morning, Nasdaq-100 futures fell 0.3% and S&P 500 futures drifted lower. Dow futures sat just above flat, and CME Group data shows 10% odds of a rate hike.
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