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Wall Street rallies as AI stocks rebound following Anthropic IPO filing
US stocks advanced sharply on Monday, October 26, with technology shares leading Wall Street's recovery after Anthropic filed for an initial public offering, reviving investor appetite for artificial intelligence companies following last week's selloff.
The S&P 500 and Nasdaq Composite headed toward their strongest daily gains in more than a month, although investors remained cautious ahead of the Federal Reserve's policy decision and major technology earnings.
Price overview
The Dow Jones Industrial Average rose 0.22% to 52,332.53 points in Monday's intraday trading, while the S&P 500 gained 0.76% to 7,681.90 points.
The Nasdaq Composite climbed 1.02% to 26,220.87 points.
AI stocks lead recovery
Anthropic's IPO filing renewed enthusiasm for artificial intelligence investments, despite growing concerns about the industry's enormous financing requirements.
Meta also announced plans to raise up to $95 billion to finance its AI expansion, highlighting the scale of investment commitments across the technology sector.
Semiconductor stocks participated in the recovery, while AI infrastructure companies rebounded following recent losses driven by concerns about debt and profitability.
Big Tech earnings approach
Investors are preparing for quarterly results from Alphabet and Microsoft on Wednesday, followed by Amazon on Thursday.
Their earnings and capital spending forecasts will provide fresh evidence of whether AI investments are generating sufficient returns.
Federal Reserve decision
The Federal Reserve is widely expected to maintain interest rates at its October 27–28 meeting.
However, persistent inflation and elevated energy prices have strengthened expectations of another rate increase in December.
The benchmark 10-year Treasury yield eased toward 4.98%, providing some relief to equity valuations.
Market outlook
Wall Street's recovery faces an important test this week as investors assess monetary policy and technology earnings.
Strong corporate results could extend Monday's gains, while disappointing forecasts or hawkish Federal Reserve guidance could quickly reverse the rebound.
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