S&P 500 Rises 0.7% as Anthropic IPO Tests Investor Appetite for AI
Key Facts
The S&P 500 rose 0.7% to 7,676.77 points in Monday’s session on October 26, while the Nasdaq Composite gained 0.8% to 26,169.38 points and the Dow Jones rose 0.3% to 52,361.58 points, according to the Associated Press. The gains came as investors assessed the impact and financing costs of the AI investment boom, alongside Anthropic’s filing of a registration statement for a share offering. The company plans to list Class A shares on the Nasdaq Global Select Market under the ticker ANT, according to its filing. It has not yet specified the number of shares to be offered or the price range. That makes the offering a looming test of investors’ willingness to continue financing the expansion of AI companies.
U.S. indexes moved higher on a day the Associated Press described as turbulent for global markets, as AI stocks remained volatile after weeks of sharp moves. Nvidia shares rose 2.4% on Monday, recouping some losses after three consecutive weeks of declines, the longest such streak since June. The S&P 500 also came within 1.8% of the record high it reached earlier in October. The session offered a sign of improving sentiment in equities, but came amid volatility that extends beyond a single day. In Asia on Tuesday, South Korea’s Kospi rose 3.1% to 5,638.34 points, while SK Hynix gained 5.2% and Samsung Electronics rose 4.2%. Japan’s Nikkei 225 added 1.7% to 63,268.37 points, and Advantest surged 9.6%.
Anthropic’s financial figures put rapid revenue growth alongside substantial losses. Revenue topped $16 billion in the first half of 2026, equivalent to 14 times revenue in the same period a year earlier, according to the Associated Press. But the company has yet to turn a profit and posted a net loss of $80.7 billion in the first half. The loss included a one-time accounting charge of $72.4 billion related to financing agreements. The figures underscore the challenge facing investors as they assess companies in the sector: revenue expansion on one side, and the scale of losses and the cost of financing investment on the other. Private investment firms valued Anthropic at $965 billion earlier this year, while reports have suggested it could reach $1.5 trillion or even $2 trillion at listing, with no final valuation set so far.
Financing concerns are tied to the cost of building data centers and buying more AI chips, as sector stocks fluctuate amid worries about rising borrowing costs, according to the Associated Press. Reuters reported that market volatility weakened the autumn IPO calendar, while higher borrowing costs added to investor concerns about the debt-fueled AI investment boom. Against this backdrop, Meta announced plans to raise $35 billion through a share sale to fund its AI investments. The company said Nvidia, AMD and Broadcom had indicated a potential willingness to buy shares worth a total of $5 billion in the offering. The plans show that capital financing for the sector extends to major technology companies, as investors watch how much spending and borrowing AI needs can justify.
Anthropic’s offering could bring it to Wall Street in the following month and perhaps surpass SpaceX’s offering, which raised $86 billion in June, according to the Associated Press; however, the offering’s value and share price have not been settled. Anthropic filed its registration statement with the U.S. Securities and Exchange Commission, but it has not yet become effective. The company said securities may not be sold, nor offers to buy them accepted, before the statement becomes effective. Peter Andersen of Andersen Capital Management described the offering’s outcome as “an indicator of how long capital spending to develop AI will continue to receive support.” Market attention will therefore focus on progress with the registration, followed by the announcement of the number of shares and the price range, as well as investor reception to the offering. These steps come as companies and markets prepare for a busy week of earnings and interest-rate decisions.
About one in three companies in the S&P 500 is expected to report results this week, according to the Associated Press. Alphabet and Microsoft are scheduled to report on Wednesday, followed by Amazon on Thursday. The reports will provide new signals on technology companies’ performance and AI-related spending in a week that will also draw attention to decisions by the Federal Reserve and other major central banks. In the bond market, the 10-year U.S. Treasury yield fell to 4.98% from 5.00% late Friday, while the two-year yield rose to 4.71% from 4.69%. Borrowing costs remain relevant to investor concerns about financing AI investment and the ability of new offerings to attract demand.