Nasdaq closes 0.8% higher as Anthropic IPO filing boosts AI stocks

US stocks closed higher on Monday as Anthropic’s IPO filing lifted sentiment towards artificial intelligence stocks, helping the S&P 500 and Nasdaq recover after two consecutive weeks of losses.

Semiconductor shares led gains as investors assessed the prospects for AI-related spending ahead of a busy week featuring major technology earnings, economic data and the Federal Reserve’s interest-rate decision.

The Dow Jones Industrial Average rose 0.28% to 52,361.76, while the S&P 500 gained 0.70% to 7,677.03. The Nasdaq Composite advanced 0.83% to 26,169.38.

Anthropic IPO filing lifts AI stocks

Anthropic’s public filing for an initial public offering helped revive interest in AI-related stocks amid concerns about the sustainability of spending on data centres, chips and computing infrastructure.

The company behind Claude reported $16.29 billion in revenue for the six months ended June, a 1,304% increase from $1.16 billion in the same period a year earlier.

Anthropic plans to list on the Nasdaq under the ticker symbol ANT.

The filing comes as investors scrutinise whether substantial AI investments can translate into sustainable revenue growth and profits.

The company disclosed steep losses alongside rapid revenue expansion, highlighting both the commercial opportunities and financial costs associated with developing advanced AI models.

Semiconductor stocks benefited from the improved sentiment.

Nvidia gained 2.39%, Micron rose 3%, Broadcom advanced 2.3%, and Advanced Micro Devices climbed 2.8%.

The iShares Semiconductor ETF rose nearly 3%, although it remained under pressure following significant declines in recent weeks.

Other developments also drew attention to AI financing.

Meta Platforms announced plans to raise to $95 billion in equity to support its AI expansion, while SpaceX said it had closed a $40 billion debt deal to finance AI chips.

Chipmakers and AI infrastructure stocks rebound

Technology shares led gains among the S&P 500’s major sectors as investors responded to the improved outlook for AI-related businesses.

Neocloud companies also recovered after recent weakness, despite concerns about their debt levels and ability to sustain infrastructure spending.

CoreWeave shares rose 4.7%, while Nebius Group gained 2%.

The rebound came after Elon Musk warned that more than 200 companies in the specialised AI cloud sector could face severe difficulties.

These businesses build and rent computing infrastructure designed for AI workloads, often relying on substantial financing to expand capacity.

The wider AI trade has faced pressure this month as investors question whether rising borrowing costs could make data-centre investments harder to justify.

The semiconductor ETF remains significantly below its recent high, reflecting continued volatility in the sector.

Lower oil prices also supported the broader market. Brent crude fell 1.11% to $115.45 a barrel, while US West Texas Intermediate declined 1.6% to $101.61.

Fed decision and big tech earnings in focus

Investors are preparing for several market-moving events this week, including the Federal Reserve’s policy announcement on Wednesday and economic growth and inflation data scheduled for Thursday.

Markets largely expect the Fed to leave interest rates unchanged at 3.75% to 4%.

However, persistent inflation pressures have raised questions about whether policymakers could resume tightening later in the year.

Corporate earnings are another major focus, with 163 S&P 500 companies scheduled to report quarterly results.

Investors will pay particular attention to Alphabet, Microsoft and Amazon for evidence that their AI investments are supporting business growth.

The results could influence sentiment towards technology shares as investors assess whether increased spending on AI infrastructure is delivering sufficient returns.

The November 3 US midterm elections are also approaching, adding another potential source of uncertainty for markets.