US stocks closed higher on Monday, with the Nasdaq Composite advancing 0.83% to 26,169.38, as Anthropic's public filing for an initial public offering (IPO) revived investor interest in artificial intelligence (AI) stocks. The S&P 500 gained 0.70% to 7,677.03, while the Dow Jones Industrial Average rose 0.28% to 52,361.76. The move helped both major indices recover after two consecutive weeks of losses.
Anthropic, the company behind the AI assistant Claude, reported revenue of $16.29 billion for the six months ended June, a 1,304% increase from $1.16 billion in the same period a year earlier. The company plans to list on the Nasdaq under the ticker symbol ANT. The filing comes as investors scrutinize whether substantial AI investments can translate into sustainable revenue growth and profits, with Anthropic disclosing steep losses alongside its rapid revenue expansion.
Semiconductor shares rebound
Semiconductor stocks led gains as investors assessed the prospects for AI-related spending. Nvidia rose 2.39%, Micron gained 3%, Broadcom advanced 2.3%, and Advanced Micro Devices climbed 2.8%. The iShares Semiconductor ETF rose nearly 3%, though it remained under pressure following significant declines in recent weeks.
Other developments also drew attention to AI financing. Meta Platforms announced plans to raise up 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.
Neocloud stocks recover
Neocloud companies, which build and rent computing infrastructure for AI workloads, also recovered after recent weakness. CoreWeave shares rose 4.7%, while Nebius Group gained 2%. The rebound came after Elon Musk warned that more than 200 companies in the specialized AI cloud sector could face severe difficulties, citing concerns about their debt levels and ability to sustain infrastructure spending.
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%, but 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.
This article is for informational purposes only and does not constitute financial advice.
