US STOCKS-Equities climb as Anthropic's IPO filing buoys AI stocks

​US stocks were higher on Monday, with the S&P 500 and Nasdaq coming off consecutive weekly declines, as Anthropic's IPO filing helped boost AI-related stocks in a week filled with a host of market catalysts. Anthropic disclosed steep losses and red-hot revenue growth in its filing for a US initial public offering, laying out its ambition ‌to build AI systems capable of reshaping the global economy despite the high costs of developing the technology.

The AI lab is pushing ahead with its listing plans even as a once-busy autumn IPO calendar has slowed, with recent market volatility prompting companies to delay offerings. Anthropic's filing comes as investors increasingly dissect the potential payoff from massive AI spending and at the start of an eventful week. On tap are the Federal Reserve's policy statement on Wednesday, ‌readings on economic growth and inflation on Thursday and a slew of corporate earnings reports throughout the week.

More than a third of S&P 500 companies are scheduled to report earnings this week, including hyperscalers Alphabet , ‌Microsoft and Amazon.com, whose results will be parsed for signs of whether the hefty AI investments are translating into growth. "Today's all about the Anthropic release, so we're back on a little bit of an optimistic tilt, I would say. But there's a lot in that release. It will be interesting to see how well things are received when they actually come to list," said JP Powers, chief investment officer at RWA Wealth Partners in Boston.

"The risk is maybe a little bit of a whipsaw if things aren't all moving ⁠in the same ​direction. A little optimism today, but who knows what will ⁠happen from some of these other releases this week," Powers said. The Dow Jones Industrial Average rose 81.86 points, or 0.16%, to 52,297.02, the S&P 500 gained 51.39 points, or 0.67%, to 7,675.07 and the Nasdaq Composite gained 231.59 points, or 0.89%, to 26,186.93.

AI BENEFICIARIES ⁠DRIVE ADVANCE Semiconductor and chip-related companies, widely viewed as some of the biggest beneficiaries of the AI boom, were helping to fuel the gains. The broader Philadelphia chips index was up more than 3% but is still down nearly 12% on the ​month.

Meta said on Monday it plans to raise up to $95 billion in equity to fund its AI-related expansion of data centers, cloud computing power and other infrastructure. Its shares were last off 0.4%. The ⁠AI trade has come under pressure this month amid concerns that debt-funded spending may become harder to justify in the face of climbing borrowing costs.

The Anthropic filing helped buoy sentiment, however, as neocloud firms such as CoreWeave and Nebius, which have been at the center of the ⁠AI ​storm, erased initial losses and were trading higher on the session. Other AI-linked companies, including photonic product makers Lumentum, up about 10%, and Coherent, up about 7%, were among the best-performing S&P 500 stocks. The technology index led gains among the 11 major S&P 500 sectors, up 1.6%.

Megacap and growth stocks were also mostly higher. Tesla jumped 6.3% to its highest intraday level in more than three months after Barclays upgraded its rating on ⁠the stock to "overweight" from "equal-weight." While markets are pricing in only a 12.7% chance for a rate hike from the Fed on Wednesday, according to CME FedWatch, with inflation pressures showing no signs of abating, market participants ⁠do not believe the central bank will be on ⁠hold for long.

Investors are also bracing for the November 3 midterm elections, which will decide control of the US Congress. Advancing issues outnumbered decliners by a 1.46-to-1 ratio on the New York Stock Exchange and by a 1.18-to-1 ratio on the Nasdaq.

The S&P 500 posted six new 52-week highs and six new lows, while the Nasdaq ‌Composite recorded 74 new highs and ‌298 new lows.