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Stocks rose Monday as semiconductor makers rallied after Anthropic’s IPO filing revived enthusiasm for the artificial intelligence trade.
The Dow Jones Industrials popped 146.52 points to 52,361.58.
The S&P 500 index gained 53.09 points to 7,676.77
The tech-heavy NASDAQ raced ahead 214.04 points to 26,169.38.
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 sector.
The AI company behind Claude 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.”
Other major AI headlines added to the risk-on sentiment. Meta Platforms said Monday it is planning to raise $95 billion to support its AI investments. SpaceX CEO Elon Musk said over the weekend that the satellite and rocket launch company has closed a $40-billion debt deal for AI chips.
Semiconductors rallied as shares of Nvidia climbed 2.6%, Micron increased 4%, Broadcom rose 3% and Advanced Micro Devices jumped 3%.
Neocloud names bounced Monday, even after Elon Musk said more than 200 companies in the space face “guppy-level death.” A neocloud is a specialized cloud computing company that builds and rents out AI-dedicated infrastructure. Shares of CoreWeave popped 4.7%, while Nebius Group gained 2%.
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 4.99% from Friday’s 5%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.24 to $102.03 U.S. a barrel.
Gold prices moved upward $19.40 to $4,027.30 U.S. an ounce.
