Wall street opens on a positive note: Dow Jones surges 200 pts, S&P 500 and NASDAQ 100 rise 0.4%; Anthropic files for IPO

The US stock market indices opened in the green on Monday and started the week on a positive note. The benchmark indices closed the previous week largely in losses amid the sharp selloff in AI stocks. Meanwhile, investors are also waiting for the Federal Reserve’s policy decision to be announced on Wednesday.

During Monday’s regular trading session, the Dow Jones surged the most by over 200 points or 0.4%, followed by the S&P 500 at 0.4%, and the NASDAQ 100 surged 0.4%.

Besides this, crude oil prices fell from five-month high levels on Monday as investors reassessed the risks arising from the Middle East. WTI crude oil prices fell over 2% near $100 per barrel mark. Brent crude oil prices recouped some early losses of Monday to trade 1.5% lower at $114 per barrel.

Meanwhile, the Treasury continued to cool off further below the crucial threshold levels. The US 10Y and 30Y yields extended their fall, while the 2Y yields rose 9 basis points to the 4.7% mark ahead of the Federal Reserve’s policy action on Wednesday.

The CME Fedwatch tool now shows a 90% probability of a status quo, keeping the policy rates unchanged at 3.75% to 4.00% in the October policy meeting. However, Federal Reserve Chairman Kevin Warsh previously said that the central bank remains committed to bringing inflation lower.

The latest CPI inflation print came in at 3.7%, snapping the two-month stagnation at 3.4%. Meanwhile, broader economic activity continues to remain relatively stable, with the composite PMI at 57.1 for October.

Anthropic IPO

Meanwhile, the AI stocks are also in focus after Anthropic officially filed an S-1 registration statement for an IPO. Market participants expect the AI company to raise $100 billion at a valuation of $2 trillion, placing it in the league of megacap companies post-listing. In H12026, Anthropic posted revenue of $16.3 billion and a net loss of $80.7 billion. S-1 filings include warnings of AI’s existential risks to humanity, which remains a sentiment overhang for investors in tech stocks.

Semiconductor stocks stage comeback

In today’s regular trading session, the semiconductor ETF (SOX) surged over 1% amid a smart pullback in the AI-related semiconductor chip stocks. NXP Semiconductors (+3.5%), Lam Research Corporation (+2.5%), Tower Semiconductor (+2.1%), Nvidia (+1.8%), Broadcom (+1.3%), Micron Technology (+1.3%), and Qualcomm (+0.7%) were among the major gainers in the semiconductor index SOX.