JJ Kinahan is Senior Vice President, Head of Retail Expansion and Alternative Investment Products at Cboe Global Markets, Inc. (Cboe).
Key Takeaways:
- The S&P 500 Index snapped its three-session losing period
- Meta says it needs $95 billion to finance AI and core business
- Verizon misses on sales, but beats on profits
The market started a big week with a bundle of news mostly surrounding artificial intelligence (AI) buildouts and Anthropic’s initial public offering (IPO) plans. Moreover, this is just the first day of the busiest earnings week this quarter, and we’ll hear the Federal Reserve’s interest rate decision on Wednesday.
The three major indices all advanced but ended below their intraday highs. Oil prices also retreated and the 10-year and 30-year bond yields fell. AI-centric stocks largely benefited from news about Anthropic’s plans to move forward with its long-anticipated public filing, giving the Nasdaq Composite an early boost of more than 1%.
By the end of the session, the Nasdaq climbed 0.83%. The S&P 500 Index, which also includes several technology-driven companies, was up 0.70%, and the Dow Jones Industrial Average finished ahead by 0.28%. The 10-year yield ended at 4.98% and the 30-year at 5.30%. WTI crude oil settled at $102.36 per barrel, down 0.88%.
Anthropic’s Form S-1 filing with the Securities and Exchange Commission (SEC) dominated market news throughout the day and is likely to continue to be front and center as analysts dig through the document. It could be the largest IPO ever, surpassing SpaceX’s in June, with a target valuation of $1.5 trillion to $2 trillion, according to published reports. The 335-page registration contains 94 pages on risk factors alone. Anthropic plans to hold its investor roadshow in two weeks, meaning the company could go public before Thanksgiving. It plans to trade on the Nasdaq under the ticker ANT.
Here are a few of the numbers it released in the filing: its annualized revenue run rate hit $65 billion at the end of July, about seven times its revenues a year earlier; third-quarter revenues reached $16.3 billion; the first-half loss was reported at $80.7 billion, approximately $72 billion of which was non-cash. That math works out to an underlying loss of $8.7 billion.
While many analysts expect demand for Claude.ai's parent company shares to be off the charts, investor appetite may not be as strong as it was even a month ago. The filing has led to two primary issues. The first is the company’s ongoing need for capital to cover $542 billion in long-term infrastructure and $567 billion in computing agreements. Additionally, two unnamed customers account for 24% of the $4.6 billion in revenue Anthropic earned in 2025, according to the filing. That works out to roughly $1.1 billion between them, a big chunk of money from only two players.
That said, we'll keep an eye on the comments between now and IPO day.
Also on the AI front, Meta plans to raise up to $95 billion to finance its AI investments and core business. Described as one of the largest equity offerings in history, the Facebook and Instagram parent company said it will offer about $35 billion in common and preferred stock and raise about $60 billion through its planned Class C nonvoting shares. Meta shares fell about 1.9%.
Verizon shares retreated 3.5% after the communications company beat Wall Street’s earnings expectations but missed on sales, which fell 1.5% year-over-year to $34.3 billion. Still, the company raised its full-year earnings guidance.
As noted, this is a heavy earnings week, with quarterly results from Coca-Cola, United Parcel Service, Boeing and Visa on Tuesday; Microsoft and Alphabet after the session on Wednesday; and Caterpillar, Amazon and Intel on Thursday.
Happy Trading!
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