US stock indexes rise as Anthropic's IPO filing lifts AI shares

what happened

According to Reuters, US stock indexes closed higher on Monday after two consecutive weekly declines. The S&P 500 rose 0.70% to end at 7,677.03 points, the Nasdaq Composite added 0.83% to 26,169.38, and the Dow Jones Industrial Average climbed 0.28% to 52,361.76.

Anthropic's US IPO filing supported sentiment. The filing showed steep losses and rapid revenue growth, and the company said it aims to build AI systems that could reshape the global economy despite heavy development costs. The Philadelphia semiconductor index gained about 3% on the day but is still down nearly 12% for the month.

Meta said it plans to raise up to $95 billion in equity to fund expansion of data centers, cloud computing capacity and other AI infrastructure. Barclays upgraded Tesla to overweight from equal-weight, and the shares hit their highest intraday level in more than three months.

why it matters

Investors remain concerned that debt-funded AI spending may become harder to justify as borrowing costs climb. According to CME FedWatch, markets price only a 12.7% chance of a Fed rate hike at Wednesday's meeting, but participants do not expect the central bank to stay on hold for long. More than a third of S&P 500 companies report earnings this week, including Alphabet, Microsoft and Amazon, which will show whether huge AI outlays are paying off.

market impact

US stocks: support for AI and chip shares, but risk of sharp swings during earnings week and the Fed decision

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instruments