Anthropic IPO filing lifts Wall St, AI in focus

Wall Street’s main indexes moved higher on October 26, supported by renewed interest in artificial intelligence and chip-related stocks following Anthropic’s filing for a U.S. initial public offering. At 09:55 a.m. ET, the Dow (DJIA) Jones Industrial Average rose 236.42 points, or 0.45%, to 52,451.58. The S&P 500 gained 43.20 points, or 0.57%, to 7,666.88, while the Nasdaq Composite was up 119.43 points, or 0.46%, at 26,074.96. Advancing issues outnumbered decliners on both the NYSE and Nasdaq, and the S&P 500 and Nasdaq Composite each recorded new 52-week highs as well as new lows.

Index futures had pointed to these gains ahead of the open. At 09:05 a.m. ET, Dow E-minis were up 208 points, or 0.4%, S&P 500 E-minis were higher by 25.75 points, or 0.34%, and Nasdaq 100 E-minis rose 175.5 points, or 0.6%. Technology shares led the move higher, with broad advances across megacap and growth names at the start of a week also dominated by corporate earnings and the Federal Reserve’s interest rate decision.

Anthropic’s U.S. IPO filing brought the AI theme back to the forefront of equity markets. In its documents, the AI lab disclosed steep losses alongside rapid revenue growth and set out an ambition to build AI systems capable of reshaping the global economy, while acknowledging the high costs and challenges of developing the technology. The company is pressing ahead with its listing plans even as a once-busy fall IPO calendar has thinned, with some companies delaying offerings amid market volatility.

Investors assessed the filing as part of a broader reassessment of AI-related opportunities. The renewed focus came after a subdued reception to recent earnings from AI-linked megacap companies, where spending plans have been closely scrutinized. About a third of S&P 500 constituents are scheduled to report earnings this week, including large cloud and AI players whose results are being watched for signs that significant AI investments are translating into financial returns.

Semiconductor and chip-related companies rose after a volatile period. Nvidia (NVDA) and rivals AMD (AMD) and Intel (INTC) each climbed more than 1%, helping lift technology-heavy indexes. A rally in chipmakers supported broader risk sentiment and contributed to the S&P 500 halting a run of back-to-back losses. Most megacap and growth stocks traded higher in premarket dealings, adding to the positive tone in early cash trading.

Tesla (TSLA) shares gained 2.5% after a rating upgrade to “overweight” from “equal-weight,” further bolstering growth and technology sectors. The strengthening in these areas contrasted with weakness in parts of the AI ecosystem more exposed to funding conditions, highlighting a divergence within the broader theme.

Despite the positive index moves, the AI trade has remained under pressure this month amid concern that large, often debt-funded spending on AI infrastructure could be harder to justify as borrowing costs rise. Meta (META) stated it plans to raise up to $95 billion in equity to support AI-driven expansion of data centers, cloud computing power and other infrastructure. Its shares were last down 1.8%, reflecting investor caution around the scale of planned spending and equity issuance.

Funding conditions also weighed on some neocloud and data center–linked firms. CoreWeave (CRWV) fell 3.9% and Nebius (NBIS) dipped 1.7% after comments that markets have almost entirely shut off access to money for companies without substantial revenue independent of AI data centers, alongside predictions of neocloud consolidation.