Stocks rose Monday, as semiconductors gained after Anthropic’s IPO filing revived some enthusiasm for the AI trade.
The Dow Jones Industrials recovered 156.91 points to 52,372.07.
The S&P 500 index gained 30.86 points to 7,654.54
The tech-heavy NASDAQ sprang up 107.30 points to 26,062.64.
Chip stocks and other AI-related shares rose as Anthropic publicly filed for an IPO, an offering investors are betting will add new life to the flagging tech rally.
The AI company reported $16.29 billion in revenue for the six months ended June, a 1,304% increase from $1.16 billion during the same period a year earlier. It plans to list on the NASDAQ under ticker symbol “ANT.”
Shares of Nvidia gained 1.4%, while Micron jumped 2.3% and Broadcom rose 1.5%. Advanced Micro Devices climbed 1.3%.
A slide in oil prices also bolstered the major averages. Brent futures fell 1.4% to trade at $115.02 a barrel, while U.S. West Texas Intermediate slid 2% to $101.01 per barrel.
Brent crude had hit its highest level since April last Friday amid news reports that the U.S. and Israel could be planning to launch strikes on Iran after the midterm elections.
Wall Street is coming off a losing week, following a spike in oil prices and a broadening sell-off that hit many market sectors. The S&P 500 and the NASDAQ notched back-to-back weekly losses.
Neocloud stocks pressured the market last week as well, as investors worried companies may be borrowing too much cash to expand their AI capabilities. Neocloud names fell again on Monday after Elon Musk said more than 200 companies in the space face “guppy-level death.”
Traders are awaiting the Federal Reserve’s decision on Wednesday. Fed funds futures trading suggests a 90% likelihood that policy makers will hold interest rates at the current target range of 3.75% to 4%
Prices for the 10-year Treasury was slightly higher, raising yields to 4.97% from Friday’s 5%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.78 to $101.49 U.S. a barrel.
Gold prices slid $12.00 to $4,019.90 U.S. an ounce.
