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U.S. stocks closed higher Monday, with the Nasdaq up 0.8%, as renewed interest in AI helped lift markets. Investors are watching earnings from major technology companies and a Federal Reserve meeting that is expected to leave interest rates unchanged.
U.S. stocks closed higher Monday as renewed interest in artificial intelligence followed Anthropic’s filing for a potential public offering, while investors prepared for major technology earnings and a Federal Reserve meeting. The Nasdaq Composite rose 0.8% to 26,169, the S&P 500 gained 0.7% to 7,676 and the Dow Jones Industrial Average added 0.3% to 52,361, according to Kiplinger’s market report.
Anthropic, the developer of the Claude large language model and AI assistant, filed for what could become a major initial public offering. Kiplinger reported that the company has a ticker symbol, ANT, and could begin trading on the Nasdaq as soon as next month if plans proceed. The filing renewed attention on AI-related stocks, though the company’s eventual valuation, offering details and trading debut are not established by the report.
The gains came as investors looked ahead to quarterly results from Microsoft, Amazon and Alphabet, three members of the Magnificent Seven. Their reports are expected to provide clues about demand for cloud computing and AI services, and about the cost of expanding the data-center capacity those businesses require. Meta Platforms and Tesla had reported results the prior week, while Apple was scheduled to report the following Monday, November 2; Nvidia was expected to report November 18, though its date had not been confirmed, Kiplinger said.
Trading in other markets was mixed. The front-month West Texas Intermediate crude contract fell 1.8% to $101.48 a barrel, despite being up more than 12% in October at the time of the report. The two-year Treasury yield rose 3.2 basis points to 4.716%, while the 10-year yield slipped 0.2 basis point to 4.986% and the 30-year yield fell 1.6 basis points to 5.299%.
AI Spending Faces an Earnings Test
The rally puts a spotlight on whether enthusiasm for AI is matched by business growth and returns on the heavy spending behind it. Investors will be looking beyond headline revenue at cloud demand, free cash flow and capital expenditure, or capex, as the largest technology companies report. Those figures can help indicate whether investment in computing infrastructure is translating into sales, but one week of company results will not settle the broader debate over the pace or profitability of AI adoption.
The Federal Reserve meeting adds another source of uncertainty for borrowing costs and market expectations. E*TRADE From Morgan Stanley Managing Director Chris Larkin said high-profile earnings and economic data could push the market out of its recent trading range “one way or the other.” That is an assessment of potential catalysts, not a prediction of how stocks will move.
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The Week’s Earnings and Fed Calendar
Kiplinger described stocks as having been kept off balance by AI concerns and oil prices. Monday’s advance followed a difficult stretch for the market, but the report did not quantify the prior trading range or establish that the gains marked a lasting change in direction. Oil prices also remained elevated on the month even after the day’s decline; Kiplinger cited uncertainty around geopolitical risks and improving flows from the Middle East as factors investors were weighing.
The Federal Open Market Committee meeting was set to begin Tuesday and finish Wednesday. Deutsche Bank Senior U.S. Economist Brett Ryan expected the Fed to hold its target federal funds rate range at 3.75% to 4.00%. He also anticipated possible dissents from that decision. E*TRADE’s Larkin likewise said traders would focus on technology earnings, particularly from Microsoft and Amazon, while assessing the outlook for AI.
Stifel analysts said investors would watch cloud consumption, free cash flow and capex at Microsoft, Alphabet and Amazon. Their view that Azure could exceed a consensus forecast of 46% to 48% year-over-year revenue growth is an analyst forecast, not a reported result. They also pointed to recent revenue-growth momentum at Alphabet and Amazon and to Amazon management’s comments about constrained future capacity.
““Warsh is likely to signal that recent inflation data reinforce expectations from the September meeting that further tightening will likely be needed over time.””
— Brett Ryan, senior U.S. economist at Deutsche Bank
IPO Terms and Rate Decisions Remain Open
Anthropic’s filing does not settle when the shares will begin trading, how many shares will be offered or what valuation investors might face. Kiplinger said ANT could start trading next month if the process goes according to plan, but the report did not provide confirmed offering terms. The company’s future market performance is also unknown.
The Fed’s decision and the details of any dissent were still pending when the report was published. Ryan’s expectation of a hold and his forecast for Warsh’s press conference are attributed views, not official guidance. It was also unclear how the committee would characterize inflation, financial conditions or recent AI-related volatility.
Company earnings had not yet supplied the results investors were awaiting. Forecasts for cloud growth and expectations about spending should not be treated as reported outcomes. Monday’s market gains alone do not show whether the AI trade has resumed on a sustained basis.
Fed Statement and Tech Results Ahead
Investors will first assess the Fed’s statement and Chair Kevin Warsh’s post-meeting press conference after the committee concludes its meeting Wednesday. The rate decision, any dissents and the Fed’s description of inflation and financial conditions are the next scheduled policy signals.
Attention will then turn to quarterly results and management commentary from Microsoft, Amazon and Alphabet, particularly cloud growth, AI-related demand, free cash flow and capital spending. Those disclosures may clarify how quickly companies are adding capacity and whether customers are using the services at a pace that supports continued investment. Apple’s report was scheduled for November 2, while Nvidia’s anticipated November 18 earnings date had not been confirmed in the source report.
Key Questions
How did major U.S. stock indexes perform Monday?
The Nasdaq Composite rose 0.8% to 26,169, the S&P 500 gained 0.7% to 7,676 and the Dow Jones Industrial Average added 0.3% to 52,361, according to Kiplinger.
Why did stocks rise?
Kiplinger linked the advance to a revival of interest in AI after Anthropic filed for a potential IPO. The report also noted that investors were positioning ahead of major technology earnings and the Fed meeting; it did not establish a single cause for the market’s gains.
What is known about Anthropic’s potential IPO?
Anthropic, the company behind Claude, filed for a potential offering and has the ticker ANT, according to Kiplinger. A Nasdaq debut next month was described as possible if plans proceed, but the report did not give confirmed timing, offering terms or valuation.
What was expected from the Federal Reserve meeting?
Deutsche Bank economist Brett Ryan expected the Fed to keep its target rate range at 3.75% to 4.00% and said dissents were likely. That was an economist’s forecast; the Fed’s decision was still pending in the report.
What will investors watch in technology earnings?
Investors are expected to focus on cloud-service growth, AI demand, capital spending and free cash flow at Microsoft, Amazon and Alphabet. Analyst estimates and company comments cited ahead of the reports are not substitutes for the results themselves.
Source: rss
