US stocks rose on Monday, 26 October, as a landmark initial public offering filing by Anthropic and a $50 billion natural gas merger lifted sentiment, with investors positioning ahead of a week packed with earnings from the largest technology companies.
The Nasdaq Composite gained 214.04 points, or 0.82 per cent, to close at 26,169.38. The S&P 500 rose 53.12 points, or 0.70 per cent, to 7,676.80, while the Dow Jones Industrial Average added 146.36 points, or 0.28 per cent, to 52,361.52. The small-cap Russell 2000 rose 0.43 per cent to 2,787.81.
Despite the gains in the major indices, market breadth was mixed, with roughly as many stocks declining as advancing across US exchanges.
Anthropic Sets the Tone
The day's biggest story was Anthropic's public filing for an IPO on Nasdaq under the ticker ANT. The AI company's S-1 disclosed first-half 2026 revenue of $16.3 billion and a second-quarter operating profit, giving investors their first detailed look at the finances of one of the most valuable private companies in the world.
The filing raised hopes that a successful listing could reinvigorate the IPO market and provide a public benchmark for valuing AI companies, which have attracted enormous private investment. Reports have suggested the IPO could value Anthropic at $1.5 trillion to $2 trillion.
Energy Deal Lifts Range
Range Resources shares surged about 16 per cent after EQT Corporation agreed to acquire the company in an all-stock deal that will create a natural gas producer with an enterprise value of more than $50 billion. EQT shares traded slightly lower. The deal highlighted continued consolidation in the US energy sector and optimism about long-term demand for natural gas, driven by liquefied natural gas exports and power demand from data centres.
Tesla Rallies
Tesla shares rose about 6 per cent after Barclays upgraded the electric vehicle maker to overweight with a price target of $450. Tesla's shares are closely watched as a barometer of retail investor sentiment and of enthusiasm for its autonomous driving and robotics ambitions.
Comfort Systems USA, a mechanical and electrical contractor that has benefited from data centre construction, gained 6.82 per cent.
Decliners
Fair Isaac, the company behind FICO credit scores, fell about 8.6 per cent following analyst downgrades. Moderna declined 7.23 per cent, extending recent volatility in the vaccine maker's shares around its late-stage clinical data.
Meta shares slipped about 1.7 per cent in early trading after the company announced plans to raise up to $95 billion through stock offerings to fund its AI spending, raising concerns about dilution.
Shares of Brazilian financial companies came under heavy pressure following the country's presidential run-off election, with Brazil-focused stocks among the most volatile names of the session.
Oil, Gold and Bonds
Oil prices eased but remained elevated. West Texas Intermediate crude fell 1.78 per cent to $101.40 a barrel, while Brent crude declined 1.34 per cent to $115.20, still reflecting supply concerns linked to disruption in the Middle East.
Gold futures rose 0.44 per cent to $4,025.40 an ounce in early trading, while silver futures were little changed at $53.90.
The yield on the 10-year US Treasury note edged down to 4.984 per cent. Yields near 5 per cent have weighed on equity valuations in recent months, reflecting persistent inflation pressures and expectations that interest rates will remain high.
A Busy Week Ahead
Investors are bracing for a heavy week of corporate earnings. Microsoft, Alphabet, Amazon and other major technology companies are due to report, with markets focused on whether their massive spending on AI infrastructure is translating into revenue growth.
The debate over AI spending has intensified, with Meta's equity raise and large financing deals for AI chips highlighting the scale of capital being deployed. Apollo's chief economist recently argued that AI has delivered little financial payoff for corporate America outside Big Tech, a view that has added to investor caution.
Investors will also watch for signals from the Federal Reserve, with inflation and the strength of the economy shaping expectations for interest rates.
Implications for India
Movements on Wall Street have a significant influence on Indian markets, particularly through foreign portfolio investment flows and sentiment toward technology stocks. Indian IT services companies, which earn much of their revenue from US clients, are closely linked to US corporate technology spending.
High US Treasury yields have contributed to capital outflows from emerging markets, including India, and to pressure on the rupee. Elevated oil prices also weigh on India, which imports most of its crude. A successful Anthropic IPO and continued AI investment could, however, support demand for Indian technology services tied to AI adoption.
Sector Rotation and the AI Trade
Beneath the headline gains, investors continued to rotate between sectors as they weighed the outlook for AI-related stocks. Companies benefiting from data centre construction and power demand, including electrical contractors, equipment makers and energy producers, have attracted strong interest, while some software and consumer stocks have lagged amid concerns about how AI could disrupt their businesses.
The volatility of AI-related stocks has been notable in recent weeks. Concerns about the financing of AI infrastructure, the scale of capital expenditure and competition from Chinese developers have periodically triggered sharp sell-offs, while positive news, such as Anthropic's strong revenue growth, has sparked rallies. That pattern is likely to continue as investors seek evidence that AI investments are producing tangible returns, with this week's Big Tech earnings providing the next major test.
Investors also had to weigh a heavy calendar of economic data and corporate news alongside earnings, leaving markets sensitive to any surprise. With valuations of the largest technology companies already elevated, analysts have cautioned that even solid results may not be enough to lift shares if spending guidance rises faster than revenue.
What Comes Next
The week's earnings reports will be crucial in determining whether the market's gains can be sustained. Strong results from Big Tech could reinforce confidence in the AI trade, while disappointment could reignite concerns about valuations and spending.
For now, the combination of a landmark AI IPO filing and major dealmaking suggests that, despite elevated yields and oil prices, investor appetite for growth and transformative technology remains robust.
