Artificial intelligence and technology stocks boosted markets at the week’s open after Anthropic's IPO filing boosted sentiment across the sector.
- Alphabet, Microsoft, and Amazon are set to report their earnings this week.
- Markets will also watch the Federal Reserve’s policy meeting set to begin on Tuesday.
- On the geopolitical front, media reports indicate that senior officials from Saudi Arabia, Turkey, and Pakistan held talks with Iran on Monday to "de-escalate between the parties to the current crisis.”
U.S. stock futures traded higher in the overnight session late Monday as Wall Street kicked off the week on a winning note, bolstered by Anthropic’s Nasdaq listing to go public.
As of 10:22 p.m. EDT, Dow futures gained 0.18%, and S&P 500 futures were up 0.14%. Nasdaq-100 futures climbed 0.16%.
On Monday, U.S. benchmark indexes closed higher. The Nasdaq Composite led the climb, adding more than 200 points to close 0.82% higher. The Dow Jones Industrial Average gained 0.28%, while the S&P 500 climbed 0.70%.
| Index | Move | Close |
| Dow Jones Industrial Average | 0.28% | 52,361.58 |
| S&P 500 | 0.70% | 7,676.77 |
| Nasdaq Composite | 0.82% | 26,169.38 |
Key US Market Drivers
Artificial intelligence and technology stocks boosted markets at the week’s open after Anthropic filed its IPO, boosting sentiment across the sector. Markets are also gearing up for a week of key earnings from multiple tech companies.
The iShares Semiconductor ETF (SOXX) closed up nearly 3% on Monday, while the Direxion Daily Semiconductor Bull 3X Shares (SOXL) and VanEck Semiconductor ETF (SMH) jumped more than 8% and 2.7%, respectively.
"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," JP Powers, chief investment officer at RWA Wealth Partners in Boston, reportedly told Reuters.
Meanwhile, Alphabet Inc. (GOOGL), Microsoft Corporation (MSFT), and Amazon.com Inc. (AMZN) are set to report their earnings this week, alongside other marquee names including Visa Inc. (V), Boeing Co. (BA), Coca-Cola Co. (KO), SoFi Technologies (SOFI), Robinhood Markets (HOOD), among others.
"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.
Markets will also watch the Federal Reserve’s policy meeting set to begin on Tuesday. Investors largely expect the central bank to hold rates steady as the midterm elections approach, although markets are pricing in a December hike amid rising inflation.
Richard Clarida, PIMCO global economic advisor and former Federal Reserve vice chair, told CNBC in an interview that the Fed will hold rates steady in October, as messaging suggests “they can afford to be patient.”
“All eyes will be on the chairman’s press conference, but we do expect at least one more hike at the December meeting,” he added.
Meanwhile, on the geopolitical front, media reports indicate that senior officials from Saudi Arabia, Turkey and Pakistan held talks with Iran on Monday to "de-escalate between the parties to the current crisis.”
Iran's security chief Mohsen Rezaei said the discussions in the capital were "very good," according to state television, adding that "I feel that a new atmosphere is emerging in the region... I sensed a very positive atmosphere in the discussions among the gentlemen."
Earlier over the weekend, U.S. President Donald Trump had said that he was still working out whether to reach an agreement with Iran or take action to "finish them off." While Trump has kept the possibility of a new round of major U.S. strikes against Iran on the table, Trump told reporters on Sunday that “there will not be a strike (on Iran) today.”
Oil prices pulled back from six-month highs this week. Brent crude futures were trading at $114.71 a barrel, down nearly 1%, while WTI crude futures traded 0.85% lower at $100.89 per barrel.
Trending Tickers To Watch
SoFi Technologies Inc. (SOFI): Shares of the fintech company were up about 0.17% in the overnight session late Monday ahead of its Q3 results expected on Tuesday before the bell. Analysts expect SoFi to post earnings per share of $0.17 on revenue of $1.26 billion.
BlackBerry Ltd. (BB): The company drew attention as shares climbed overnight after CEO John Giamatteo highlighted optimistic prospects in automotive software, robotics, and physical AI.
PayPal Holdings Inc. (PYPL): The payments company fell nearly 0.8% overnight ahead of its first-quarter (Q1) earnings results. Analysts forecast PayPal to report EPS of $1.31 on revenue of $8.71 billion.
Celestica, Inc. (CLS): Shares of the supply chain solutions company surged nearly 17% in the overnight session late Monday after the company posted strong Q3 results that beat Wall Street expectations.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Invesco QQQ Trust (QQQ) traded higher at the time of writing.
Meanwhile, the 10-year U.S. Treasury yield traded at 4.978%, while the 30-year yield was 5.292%.
The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.10% amid ‘neutral’ sentiment.
Asian markets opened mixed on Tuesday. South Korea's KOSPI and Japan’s Nikkei 225 were trading higher at the time of writing. However, China’s SSE Composite was down. Australian stocks also opened higher.
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