Nasdaq Jumps 0.53% to 26,092 as Anthropic IPO Filing and Falling Oil Prices Spark Tech Rally Ahead of Fed Decision

Mumbai, Oct 26: The Nasdaq Composite surged 136.79 points, or 0.53%, to 26,092.13 at the opening bell on Monday, as semiconductor stocks rallied following Anthropic’s public IPO filing and a sharp decline in crude oil prices provided relief to investors bracing for a pivotal week of technology earnings and a Federal Reserve policy decision.  

The Dow Jones Industrial Average added 193.14 points, or 0.37%, to 52,408.30, while the S&P 500 gained 28.05 points, or 0.37%, to 7,651.73. The Russell 2000 Index, however, bucked the trend, slipping 8.13 points, or 0.29%, to 2,775.90.  

The tech-heavy Nasdaq’s advance was underpinned by a broad rally in chipmakers, with Micron Technology jumping 3.06%, Lam Research climbing 2.71%, and Applied Materials rising 1.72%, as investors returned to artificial intelligence-linked names following last week’s sell-off. 

Anthropic’s $16.29 Billion Revenue Filing Lifts Semiconductor Stocks as AI Trade Regains Momentum 

Anthropic, the artificial intelligence company behind the Claude chatbot, publicly filed its S-1 investment prospectus with the US Securities and Exchange Commission on Monday, disclosing $16.29 billion in revenue for the six months ended June, a 1,304% increase from $1.16 billion during the same period a year earlier. The company plans to list on the Nasdaq under the ticker symbol “ANT.” The filing revealed that Anthropic spent $9 billion on AI infrastructure in the first half of the year, surpassing the $7.3 billion it spent throughout the whole of 2025.  

The company reported a net loss of $80.7 billion through June, though the vast majority of that figure resulted from accounting charges. The prospectus also showed that roughly one-fifth of Anthropic’s revenue came from two customers, with the remainder derived from a small handful of clients. Greater than 5% shareholders include the Long-Term Benefit Trust and Founder LLC, and the company’s share structure includes Class A, Class F, Class E, Class T and Class N stock, with Class F common stock entitled to 50.1% of total voting power.  

The IPO filing revived enthusiasm for the AI trade, which had flagged in recent weeks amid concerns over debt-funded data centre expansion and lofty valuations. Nvidia rose 2.13%, Broadcom gained 1.61%, Advanced Micro Devices added 1.43%, and ASML climbed 1.84%. Palantir Technologies, however, slipped 0.97%. 

Brent Crude Falls 1.4% to $115.02 as Middle East Supply Fears Ease, Offering Relief to Equity Markets 

Oil prices retreated on Monday after surging to near six-month highs late last week, providing a tailwind for equities. Brent crude futures fell 1.4% to trade at $115.02 a barrel, while US West Texas Intermediate slid 2% to $101.01 per barrel.  

Prices had settled nearly $3 higher on Friday after Houthi attacks in Saudi Arabia stoked energy supply concerns. Brent finished the week up 6% and WTI ended 2.3% higher. Attacks continued over the weekend, with Houthis claiming they had targeted the Saudi airport and oil facilities on Saturday, while Saudi Arabia said on Sunday it had intercepted more missiles and drones.  

The top oil exporter restarted partial operations at its main airport on Sunday after damage from a previous round of attacks. The decline in crude prices on Monday helped limit pressure on markets from higher energy costs, as investors weighed the implications for inflation and corporate earnings. 

Federal Reserve Expected to Hold Rates at 3.75%-4% on Wednesday as Inflation Remains Above Target 

The Federal Open Market Committee begins its two-day policy meeting on Tuesday, with the rate decision scheduled for Wednesday afternoon. Fed funds futures trading suggests a 90% likelihood that policymakers will hold interest rates at the current target range of 3.75% to 4%. The central bank raised interest rates in September for the first time since 2023 to tackle persistent inflation, which has remained well above target for five years.  

Markets see just 10% odds of another rate hike this week, but 76% odds of a move on December 9. Investors will scrutinise the Fed’s statement for clues about future policy direction, particularly given that inflation is now being driven by energy shocks from the US-Iran conflict and the artificial intelligence capital boom, rather than the labour market, which is the usual source of inflationary pressure.  

Fed Chair Kevin Warsh said the recent hike removed “a dose of accommodation,” referring to economic stimulus. A key question is whether financial conditions are still too loose. Several other global central banks, including the European Central Bank, the Bank of Canada, and the Bank of Japan, will also hold policy-setting meetings this week. 

Alphabet, Microsoft and Amazon Earnings to Test AI Spending Optimism as Hyperscalers Report This Week 

Corporate earnings will provide another major market catalyst, with three mega-cap technology stocks scheduled to report results. Alphabet and Microsoft are set to announce quarterly results on Wednesday, followed by Amazon on Thursday. Investors will focus on cloud computing growth, artificial intelligence investments, revenue performance and profitability, seeking clearer evidence that heavy AI spending is translating into revenue, margins and cash flow.  

The results could provide fresh information about whether substantial spending on AI infrastructure is generating tangible returns. Meta Platforms, which announced in a regulatory filing on Monday that it intends to raise up to $95 billion in a series of stock offerings to fund its AI ambitions, saw its shares rise more than 1.5% before the bell. The Facebook and Instagram parent is launching roughly $35 billion of underwritten public offerings, consisting of about $22.5 billion of Class A common stock and approximately $12.5 billion in depositary shares representing preferred stock.  

In addition, Meta intends to initiate a roughly $60 billion at-the-market programme, which is not expected to begin until the first quarter of 2027. Meta, which expects $135 billion to $145 billion of capital expenditures in 2026, said the offerings support its “continued investment in AI infrastructure and personal superintelligence.” Other companies reporting results this week include Visa, Coca-Cola, Boeing, UPS, Eli Lilly, Mastercard, Intel, Merck, Caterpillar, Shell, ExxonMobil, Chevron, BP, AbbVie, Verizon, T-Mobile US, Chipotle, eBay and GE Vernova. 

Tesla Surges 5.02% on Barclays Upgrade Citing SpaceX Merger Potential and Robotaxi Growth 

Tesla shares rallied 5.02% after Barclays upgraded the electric vehicle maker to “overweight” from “equal-weight” and raised its price target to $450 from $370, citing potential upside from a merger with SpaceX, growth in the company’s Robotaxi business and core business strength.  

The upgrade provided a significant boost to the consumer discretionary sector and helped offset weakness in other technology names. Apple slipped 1.13%, Meta Platforms fell 1.35%, and Netflix declined 1.25%. Among other notable movers, Verizon Communications reported third-quarter earnings before the market open, delivering an earnings per share beat of $1.31 versus a consensus of $1.27, but slightly missed on revenue, reporting a 1.5% year-over-year increase to $34.3 billion, compared to the $34.8 billion consensus. Management also raised its earnings per share guidance for fiscal 2026 and said it returned $12.8 billion of capital to shareholders in the first nine months of this year.  

The company also announced a $2 billion AI infrastructure deal with Amazon Web Services. Verizon shares were roughly flat at $44 apiece. Moderna shares tumbled 8% as the company’s sell-off following the leak of results from a closely followed cancer vaccine study on Thursday continued. The stock fell more than 18% over Thursday and Friday last week. 

Neocloud Stocks Slide as Elon Musk Warns of “Guppy-Level Death” for 200+ AI Infrastructure Firms 

Shares of neocloud companies that offer AI infrastructure for rent came under renewed pressure after Elon Musk warned that more than 200 companies in the sector could face “guppy-level death and consolidation” as lenders tighten financing and investors grow more hesitant to support companies that rely entirely on AI data centres for revenue. CoreWeave, which has lost more than a third of its value in the past month amid AI debt worries, fell 3.5% in premarket trading. Iren and Applied Digital were also under pressure, declining more than 3%.  

Musk said in the same social media post that SpaceX closed $40 billion of debt to buy more AI chips, adding that SpaceX is “investment grade and has Starlink and launch revenue.” The comments added fuel to worries about the financial health of neocloud firms, which have been under scrutiny following a broadening sell-off that hit many market sectors last week.  

The S&P 500 and the Nasdaq notched back-to-back weekly losses, with the Dow shedding 650 points on Friday as oil prices continued to climb on threats of escalated fighting in the Middle East. Still, the blue-chip index ended up 0.4% for the week, its third straight weekly gain. The benchmark S&P 500 and tech-focused Nasdaq Composite finished 0.5% and 0.7% lower over the five sessions, respectively. 

Brazilian Stocks Plunge as Lula’s Election Victory Reverses Business-Friendly Rally, Petrobras Falls 21% 

Brazilian stocks plunged in premarket trading on Monday after President Luiz Inácio Lula da Silva secured a surprise re-election victory over right-wing challenger Flávio Bolsonaro, reversing a rally earlier this month. The iShares MSCI Brazil ETF tumbled 26% premarket, a drop that, if sustained through Monday, would mark its biggest single-day decline since 2000.  

Brazilian stocks had surged following Bolsonaro’s unexpected first-round lead on October 4 as investors bet the son of former President Jair Bolsonaro would usher in more business-friendly policies. Heading into Sunday’s runoff, polls showed Bolsonaro holding a narrow lead, while prediction market Kalshi suggested a stronger advantage. Energy giant Petrobras plunged 21% in premarket trading, banking group Itaú Unibanco was down 26%, brewer Ambev dropped 19%, and mining firm Vale fell 3.2%. Aircraft manufacturer Embraer was 4% lower.  

Brazil’s benchmark stock index futures dropped nearly 15% in early trading, while long-term interest rate contracts surged significantly, with contracts for January 2031 jumping 182 basis points as investors reacted to the unexpected political outcome. 

S&P 500 Equal Weight ETF Reclaims 50-Day Moving Average as Market Breadth Improves 

Analysts noted that market action beneath the surface last week was healthier than indicated in the headline indexes, following a tech-fuelled sell-off. The Equal Weight S&P 500 ETF is back above its 50-day moving average with positive momentum, with holding $215 now becoming the goal. The 50-day moving average is a popular technical indicator used to spot short-term trends.  

The equal-weight ETF was last at $216.54. Meanwhile, analysts observed that the 10 biggest stocks in the S&P 500 have started to falter again relative to the rest of the market. These 10 stocks include Apple, Nvidia, Amazon, Broadcom, the two classes of Alphabet stock, Micron, Meta, Microsoft, and Tesla. Their stutter step weighs on the overall stock market given their weight in the benchmark index. A tactical tech sell-off that began in mid-October is not yet finished, with analysts noting the possibility of sharp V-turns depending upon market sentiment.  

Technology relative performance is now well into the lower half of its long-run trend channel but has not yet hit the bottom. Despite inflows into tech over the last two weeks, notably into leveraged ETFs, Thursday’s rout saw net outflows of $1.5 billion. If the recent inflows into tech continue to get unwound, it could prolong the selloff, but it also speaks to the underlying risk appetite and potential for sharp V-turns in the other direction if sentiment shifts. 

Treasury Yields Hold Near 4.99% as Bitcoin Trades at $80,406 and Gold Rises to $4,014 per Ounce 

The 10-year Treasury bond yielded 4.99%, while the 2-year Treasury bond yielded 4.69%. The 10-year yield was down more than one basis point to below 4.99%. Bitcoin was trading at $80,406 per coin, up 0.3% during the last 24 hours. Bitcoin ETFs on Friday posted their largest collective daily outflow since June, with $635.49 million exiting the funds as the cryptocurrency’s spot price fell closer to the key psychological level of $80,000 amid a broader market sell-off.  

For the week, the funds still posted $442.67 million in inflows, while bitcoin itself logged its first three-week slide since June. Gold Spot US Dollar rose 0.43% to hover around $4,014.46 per ounce. The US Dollar Index spot was 0.12% higher at the 101.7891 level. Crude Oil WTI futures were trading lower in the early New York session by 1.93% to hover around $101.28 per barrel, while Brent futures were trading lower by 1.41% to hover around $110.13 per barrel. 

Genmab Soars 13.2% After Promising Cancer Treatment Data and Analyst Upgrade 

Danish biotech company Genmab soared 13.2% in morning trade, sending the company to the top of the Stoxx 600 index, after analysts upgraded its rating to overweight from neutral. The move came after Genmab reported “encouraging” signs in ongoing cancer drug trials. The drugmaker said its experimental treatment petosemtamab, given with chemotherapy, shrank tumours in 75% of patients receiving first-line treatment and 67% receiving second-line treatment for metastatic colorectal cancer in a phase 2 trial.  

The company said the results support its ongoing phase 3 trials, which are testing the drug in larger groups of patients. Analysts raised their price target to 3,500 Danish kroner ($525) , and other brokerages also raised their price targets. Surgery Partners soared 21% after reports that nonprofit healthcare business Bon Secours Mercy Health was in late-stage talks to buy a majority stake in the business. The deal would value the group at around $6 billion including debt. 

Honeywell Launches AI Platform at Dangote’s Nigeria Refinery as Celestica, Cadence and Welltower Prepare Earnings 

Honeywell International was 0.32% higher as it launched a new AI platform at Dangote’s Nigeria refinery. Celestica was 0.2% higher premarket ahead of its latest quarterly results scheduled to be announced after the closing bell. Analysts expect Celestica to post earnings of $2.99 per share on revenue of $5.48 billion. Cadence Design Systems was 0.003% higher in premarket trading as analysts expect third-quarter 2026 earnings of $2.05 per share on revenue of $1.61 billion after the closing bell.  

Welltower was 0.74% higher in premarket as analysts expect third-quarter 2026 earnings of $0.90 per share on revenue of $3.73 billion after the closing bell. Range Resources rose 15% after EQT Corp announced it would buy the company in a deal that values Range Resources at more than $50 billion. Shares of EQT fell 4%. The all-stock deal is expected to close in the first quarter of 2027. 

Monday’s opening rally was driven by Anthropic’s IPO filing, which disclosed $16.29 billion in revenue and revived semiconductor stocks, alongside a 1.4% decline in Brent crude to $115.02, easing inflation concerns. Investors now await the Federal Reserve’s rate decision on Wednesday, where rates are expected to hold at 3.75%-4% , and quarterly earnings from Alphabet, Microsoft and Amazon, which will test whether heavy AI spending is generating tangible returns. Oil price volatility, Middle East tensions, and the Fed’s policy statement remain key variables shaping market direction this week. 

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