Neocloud shares fall after Musk warns of failures and consolidation
CoreWeave, Nebius and IREN have each lost more than 30% this month as investors scrutinize debt and profitability in AI infrastructure.
US stocks rise as Anthropic IPO filing lifts AI sentiment
Chip stocks helped lead the advance, while investors awaited Federal Reserve policy news, economic data and earnings from major technology companies.
US equities advanced on October 26 as AI-linked shares gained following Anthropic's filing for a US initial public offering. The S&P 500 and Nasdaq finished higher after both recorded consecutive weekly losses.
Preliminary closing figures put the S&P 500 at 7,677.03, up 53.35 points, or 0.70%. The Nasdaq Composite added 214.02 points, or 0.83%, finishing at 26,169.38. The Dow Jones Industrial Average closed at 52,361.76 after rising 146.60 points, or 0.28%.
Anthropic disclosed rapid revenue growth alongside steep losses as it pursued a listing despite a slowdown in autumn offerings. JP Powers, chief investment officer at RWA Wealth Partners in Boston, said the filing had encouraged optimism, though other upcoming announcements could produce swings in sentiment.
The Philadelphia chips index gained about 3%, although it remained down nearly 12% for the month. Technology led the S&P 500's 11 main sectors. CoreWeave reversed earlier losses, while photonic product manufacturers Lumentum and Coherent ranked among the benchmark's strongest performers.
Separately, Meta said it planned to raise as much as $95 billion through equity financing for AI infrastructure, including data centers and cloud computing capacity. AI-related shares have faced pressure amid concerns about debt-financed spending and higher borrowing costs.
Investors also faced a crowded schedule of Federal Reserve policy news, growth and inflation data, and corporate results. More than a third of S&P 500 companies were scheduled to report, including Alphabet, Microsoft and Amazon.com, with attention focused on returns from AI investment.