US stocks closed higher on Monday, with the S&P 500 rising 0.70 percent to 7,676.85. The Dow Jones Industrial Average gained 0.28 percent and the Nasdaq Composite added 0.82 percent. Our own measurement put the S&P 500 at 7,678.37 points at the 26 October close.
AI shares lead the rebound
Semiconductor stocks led the advance, with the sector index up 2.8 percent. The Nasdaq 100 gained 1.1 percent. Steve Sosnick of Interactive Brokers said: “ANT has clearly revived enthusiasm for everything related to AI, which had disappeared from market sentiment for several weeks.”
Anthropic PBC filed for an initial public offering and plans to list on the Nasdaq Global Select Market under the ticker ANT. The filing came as investors looked ahead to earnings from Alphabet, Microsoft and Amazon.
Focus turns to spending and funding
Richard Saperstein of Treasury Partners said the key question is how much these companies plan to spend on AI and whether cash flow can cover it. “Or whether share and debt issuance will be needed,” he said.
Investors also awaited the Federal Reserve’s rate decision due this week. Saperstein expected the Fed not to raise rates on Wednesday. Seema Shah of Principal Asset Management said the Fed could raise rates in December and again in 2027.
Saperstein said he expected a firm statement on inflation from the Fed, but that the action taken would likely be soft.
Related: Jakarta stocks recover from deep dip to close 1.12% higher
Data: S&P Dow Jones Indices
