S&P 500, Nasdaq, Dow Begin Week Higher As Anthropic IPO Filing Rekindles AI Enthusiasm — MSFT, AAPL, CART, VZ In Focus

• The S&P 500 ended Monday 0.7% higher, the Nasdaq 100 rose 1.1%, and the Dow Jones Industrial Average gained 0.3%.
• Anthropic publicly filed for an IPO on Monday.
• Apple iPhone Duo receives multiple customer complaints regarding cracked screens.

U.S. stock indices ended higher on Monday after Anthropic filed for an IPO, boosting investor optimism in the AI space, while investors await quarterly results from top tech firms and the Federal Reserve’s October policy meeting decision. 

 The S&P 500 ended Monday 0.7% higher, the Nasdaq 100 rose 1.1%, and the Dow Jones Industrial Average gained 0.3%. The Russell 2000, which tracks small-cap stocks, added 0.4%.

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The SPDR S&P 500 ETF (SPY) gained 0.7%, and the SPDR Dow Jones Industrial Average ETF (DIA) rose 0.3%. Meanwhile, the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) ended 1.2% higher on Monday.  

Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF jumped about 3% each on Monday as gains in AMD, Micron Tech (MU) and Nvidia (NVDA). The broader Vanguard Information Technology ETF (VGT) rose 1.5%.

Retail sentiment on Stocktwits for SPY, DIA and QQQ was ‘bearish’ with ‘high’ message volumes.

US Market Drivers

Anthropic (ANTHZZX) on Monday released its public IPO filing, which showed that more than 1,900 customers paid the Claude AI maker at least $1 million over the past year, nearly double the tally in April.

The company is targeting a public listing in November, according to The Wall Street Journal, though the timing could change. The report said Anthropic’s offering could raise $100 billion or more at a valuation of $1.5 trillion to $2 trillion. The company behind Claude expects to begin trading on the Nasdaq Global Select Market under the symbol ANT.

Meanwhile, Meta Platforms’ (META) plan to raise $95 billion to support its AI investments and SpaceX CEO Elon Musk’s statement over the weekend that the satellite and rocket launch company has closed a $40 billion debt deal for AI chips kept risks around ballooning hyperscaler debt elevated. 

Over to energy markets, Brent futures fell 0.8% to settle at $115.81 a barrel, while U.S. West Texas Intermediate slid 1.7% to $101.57 per barrel, also aiding overall market sentiment at the beginning of the week.

Going ahead, investors would shift attention to quarterly updates from Microsoft (MSFT), Amazon (AMZN) and Google parent Alphabet (GOOG, GOOGL) due later this week. 

The Federal Reserve's policy announcement is also due this week on Wednesday. Pricing in Fed funds futures markets indicates a 90% probability that central bank officials will leave interest rates unchanged within the existing 3.75% to 4% range.

Key Trending Stocks

Microsoft Corp.(MSFT) is launching a workforce reduction initiative, extending voluntary buyout offers to approximately 60,000 employees, Bloomberg reported.  

Verizon CEO Dan Schulman on Monday dismissed the near-term threat from SpaceX’s Starlink ambitions, arguing that any serious challenge in the U.S. mobile market would require a full terrestrial network costing hundreds of billions of dollars and taking four to six years to build. 

Apple Inc.’s (AAPL) highly anticipated entry into the foldable smartphone market has hit an early roadblock, with a growing faction of consumers taking to social media to report cracks in the inner screens of their iPhone Duo devices. 

Shares of Instacart (CART) jumped 8% on Monday following reports that rival delivery firm DoorDash (DASH) is in talks to acquire it in a deal valuing the company at $17 billion.   

Shares of NextNav (NN) jumped 12% on Monday after SpaceX (SPCX) pushed for inclusion of its lower 900 MHz spectrum band in the Federal Communications Commission’s (FCC) proposed expansion of satellite-to-mobile spectrum. 

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