US stocks are climbing as investors digest Anthropic’s filing for its initial public offering and look forward to key big tech earnings this week.
asserted
investors → climb → earnings
The S&P 500 rose 0.8 per cent and more than recovered its losses from last week, pulling within 1.6 per cent of its all-time high set earlier this month.
asserted
S&P → rise → high
The Australian sharemarket is set to edge up, with futures pointing to a rise of 11 points, or 0.1 per cent, at the open.
asserted
futures → set → open
The ASX added 0.2 per cent on Monday.
asserted
ASX → add → Monday
The Australian dollar was trading at US70.25¢.
Anthropic PBC filed for its long-awaited IPO, a landmark moment in the artificial-intelligence industry that is growing ever-hungrier for cash to power ahead.
asserted
cash → trade → industry
The company behind Claude expects to begin trading on the Nasdaq Global Select Market under the symbol ANT, a filing with the US Securities and Exchange Commission showed.
asserted
filing → expect → Commission
Anthropic filed confidentially in June for a listing.
asserted
Anthropic → file → listing
Investors are telling bankers on the deal that their estimate of a fair valuation has shifted down to around $US1.4 trillion to $US1.5 trillion ($2-$2.1 trillion) following the company’s investor day, according to people familiar with the matter.
uncertain
estimate → tell → matter
A valuation of closer to $US1.75 trillion is potentially achievable, some of the people said, asking not to be identified as the information isn’t public.
asserted
information → say → people
The strongest lift for the market came from Nvidia, which rose 2.5 per cent.
asserted
which → come → Nvidia
That helped the chip company recover some of its drop from three straight losing weeks, its longest such streak since June, and maintain its position as the largest stock on Wall Street above Apple.
asserted
company → help → Apple
But stocks elsewhere in the artificial-intelligence industry remained unsettled.
asserted
stocks → remain → industry
They’ve been swerving on worries about whether their industry’s boom is under threat because of how expensive it’s become for companies to borrow money to build data centres and buy more AI chips.
asserted
companies → swerve → chips
Stocks are recovering their losses from last week ahead of a number of earnings reports this week from big companies, including Amazon and Intel.
asserted
Stocks → recover → Amazon
Meta Platforms bounced up and down after outlining plans to raise $US35 billion by selling stock to help pay for its AI investments.
asserted
Platforms → bounce → investments
It also said it could raise another $US60 billion by selling shares of a new class of its stock once it begins trading.
uncertain
it → say → stock
Meta’s stock initially dropped more than 2 per cent, but it quickly flipped to a gain and then pulled back to a loss of 0.2 per cent.
asserted
it → drop → cent
Meta said Nvidia, Advanced Micro Devices and Broadcom have already indicated they may buy a total of $US5 billion of stock in its offering.
uncertain
they → say → offering
That’s a signal of strong interest from big chip companies that stand to benefit from additional AI investments.
asserted
that → ’ → investments
But it also gives fuel to critics of “circular financing” who say it raises the risk if AI isn’t as successful as expected.
asserted
AI → give → risk
SpaceX, Elon Musk’s rocket company that also runs the xAI business, had similar swings.
asserted
that → run → swings
It opened with a loss and then flipped to a gain of 0.9 per cent after it agreed to a roughly $US40 billion deal with an entity managed by Apollo Global Management to lease AI computing power.
asserted
it → open → power
Musk warned over the weekend that hundreds of companies that rent out AI computing power are under threat because of the difficulty in borrowing money, saying on his social-media platform, X, that they could face “guppy-level death and consolidation.”
CoreWeave, a company that’s borrowed money to buy AI computing power that it rents to customers, has been at the centre of investors’ worries in recent weeks.
uncertain
it → warn → weeks
On Monday, it dropped 5.5 per cent quickly after trading began, only to flip to a gain of 5.1 per cent.
asserted
trading → drop → cent
Such minute-to-minute swings have become commonplace for it in recent days.
asserted
swings → become → days
Profit reports from huge tech companies this upcoming week could offer more details about how spending on AI is going, and whether it’s producing the profits and productivity that proponents promised.
Alphabet and Microsoft will report their latest quarterly results on Wednesday, with Amazon to follow on Thursday.
uncertain
Amazon → offer → Thursday
Companies across all industries are under pressure to report strong growth in their profits.
asserted
Companies → report → profits
Expectations for big growth are what allowed their stock prices to run to records recently despite worries about high inflation, high interest rates and other concerns.
asserted
prices → allow → inflation
Verizon Communications fell 2.8 per cent even though it reported a stronger profit for the summer than analysts expected, as its revenue fell short of forecasts.
asserted
revenue → fall → forecasts
Roughly one out of every three stocks in the S&P 500 is scheduled to report its latest quarterly results this week.
asserted
stocks → schedule → results
In stock markets abroad, Brazilian stocks fell sharply after President Luiz Inácio Lula da Silva won reelection in a result that surprised investors.
asserted
that → fall → investors
Other governments around the world are also feeling pressure because of their high debt loads and worries about strained budgets.
asserted
governments → feel → budgets
France has been at the centre of the worries recently following violent protests in the country.
asserted
France → follow → country
But yields on French government bonds eased Monday, and its CAC 40 stock index rose 0.8 per cent for one of the world’s better moves.
asserted
index → ease → moves
Indexes also rose in other European markets following a mixed finish in Asia.
asserted
Indexes → rise → Asia
The European Central Bank and the Bank of Japan will be meeting to vote on interest rates later this week.
asserted
Bank → meet → rates
In the U.S. bond market, yields fell for longer-term Treasurys.
asserted
yields → fall → Treasurys
The yield on the 10-year Treasury fell to 4.98 per cent from 5.00 per cent late Friday and from more than 5.30 per cent earlier this month.
asserted
yield → fall → cent
The two-year Treasury yield edged up to 4.71 per cent from 4.69 per cent late Friday.
asserted
yield → edge → cent
It more closely tracks expectations for what the Federal Reserve will do with overnight interest rates, and the widespread expectation is that it will say on Wednesday that it is leaving the federal funds rate alone following its latest meeting.
asserted
it → track → meeting
…and 4 more, not listed.
The Aporia
