US stocks gained on Monday as investors digest Anthropic PBC’s filing for its initial public offering and look forward to key big tech earnings this week as well as the Federal Reserve’s next decision on Wednesday.
The S&P 500 Index gained 0.4% as of 9:50 a.m. in New York, while the Nasdaq 100 was up 0.5%. Brent crude fell 0.84% to $116 a barrel.
“With so many firms reporting this week, we would typically say that macro factors will take a back seat to idiosyncratic results. However, we have the Fed on Wednesday and what could be a very tricky, complicated press conference,” Christopher Harvey, head of equity and portfolio strategy at CIBC, wrote in a note. “We think Wednesday afternoon will be all about the macro, but by roughly 4:30 p.m. that day, GOOGL and MSFT will take center stage, and earnings are expected to trump the Fed.”
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Anthropic filed its much-awaited S-1, moving a step closer to being the first company focused primarily on developing the most advanced artificial intelligence models to go public. Investors are parsing through all of the facts and figures, with an emphasis on what they mean for AI demand after weeks of doubt in the market.
Focus today will also be on the impact from President Luiz Inácio Lula da Silva’s win in Brazil’s runoff election against market favorite Flávio Bolsonaro. US-listed shares of Brazilian companies and those exposed to the country slumped, while the iShares MSCI Brazil ETF tumbled 24%.
Last week was a roller coaster ride for the stock market, with the Nasdaq falling 2.9% on Thursday, a day after Meta Platforms Inc. raised its capex guidance to above its operating cash flow, spooking investors looking for evidence that massive spending on AI is paying off. The Philadelphia Semiconductor Index, or SOX, tumbled 6.7% on Thursday, while investors rotated into defensive sectors.
