Wall Street Bounces Back as Chip Stocks Rally and Anthropic Files for IPO
Wall Street rebounded as chip stocks rallied and Anthropic filed for an IPO, while Meta announced a massive $95 billion capital raise to fund artificial intelligence expansion.
Wall Street returned to positive territory, with chipmakers leading the gains as investors digested a flurry of corporate earnings, major capital raises, and upcoming macroeconomic decisions.
The Nasdaq rose 0.9%, the S&P 500 added 0.8%, and the SOXX semiconductor ETF surged by more than 3%. The DRAM memory chip index posted a similar gain, reflecting renewed appetite for technology assets.
Anthropic Files for IPO and Meta Seeks Massive Funding
Anthropic drew significant market attention after submitting its prospectus for an initial public offering. The move comes after a period of skepticism surrounding artificial intelligence stocks, as investors increasingly question the massive capital inflows versus expected returns.
Meta Platforms also anchored investor focus by announcing plans to raise up to $95 billion through common and preferred stock offerings to fund its aggressive AI infrastructure investments. The tech giant revealed public offerings totaling approximately $35 billion, alongside an additional program allowing secondary equity sales of up to $60 billion.
Big Tech Earnings and Federal Reserve Decision Ahead
Markets are bracing for a heavy economic calendar, with Alphabet and Microsoft scheduled to report earnings on Wednesday, followed by Amazon and Intel on Thursday. The Federal Reserve is also expected to announce its interest rate decision, with traders anticipating a hold following the September rate cut.
In corporate developments, Microsoft announced a voluntary retirement program offered to approximately 60,000 employees. Meanwhile, Tesla shares gained traction after Barclays upgraded the stock to "overweight" and raised its price target to $450.
Global Markets and Commodities
International equities saw mixed movements, as European indices closed higher, with Frankfurt adding 1% and the Stoxx 600 gaining 0.8%. In contrast, Brazilian markets tumbled following the reelection of President Luiz Inácio Lula da Silva, sending the EWZ exchange-traded fund down by about 20%.
In the energy sector, crude oil prices edged lower, with Brent crude losing 0.53% to trade at $116 a barrel.
