Anthropic IPO Tests Nasdaq's AI Appetite as Yields Soar

Summary

Anthropic's prospectus, seen by Reuters, lays out $518 billion in spending plans ahead of a listing after the November midterms. The filing discloses that nearly a quarter of revenue comes from two customers, while a company researcher quit this month warning of AI's existential risks. Markets remain calm, with the Nasdaq at a record high a week ago, though benchmark 10-year yields across major economies trade near their highest in decades.

Equities

The FTSE 100 closed 0.10% lower at 10,684.88 on Monday, as weaker metal prices and higher bond yields weighed on the index. The FTSE 250 rose 0.31%, helped by a sharp rally in housebuilders after the British government confirmed plans for a loan programme for first-time buyers.

Precious metals fell 4.9%, while industrial miners dropped 1.2% as gold and copper prices declined. Fresnillo fell 5.1% and Endeavour Mining lost 4.4%, while Glencore dropped 1.7% and Anglo American fell 1.9% late on Monday.

UK housebuilders were among the strongest performers. Barratt Redrow jumped 11.7%, while Persimmon, Taylor Wimpey and Bellway gained between 10% and 15% after the government confirmed the equity loan scheme for next month's budget.

Entain fell 5% late on Monday after the Ladbrokes owner warned that Brazil's ban on online sports betting and gaming would hurt its 2026 online gaming revenue growth. Bank of England Deputy Governor Dave Ramsden also said persistently high inflation was influencing his thinking on interest rates, while traders were pricing in at least one 25-basis-point rate increase this year.

US stocks closed lower on Monday as oil prices and Treasury yields rose, with the Dow Jones Industrial Average down 0.67% at 51,481.51, the S&P 500 down 0.77% at 7,683.69 and the Nasdaq Composite down 0.92% at 26,820.38. The S&P 500 recorded its largest daily percentage fall since August 20.

Boeing fell 6.9% late on Monday after the Federal Aviation Administration said certification of the delayed 737 MAX 10 would be postponed until a newly disclosed software issue is resolved. Nvidia moved in the opposite direction, gaining 1.6% after announcing a $150 billion share repurchase authorisation, its largest-ever buyback.

Tesla fell 3.9% late on Monday after J.P. Morgan lowered its price target, citing weak third-quarter deliveries. Expectations of a Federal Reserve rate increase in October also rose, with markets pricing a 70.3% chance of at least a 25-basis-point increase, compared with 57.6% a week earlier.

Forex & Commodities

The US dollar edged higher early on Tuesday, staying close to a two-month high as US Treasury yields climbed. The dollar index was at 101.27 and was on course for its strongest monthly performance since June. The euro was down at $1.1360, near a three-month low, while the British pound was also lower at $1.3242. The yen weakened to 157.5 per dollar after Japan warned again about the risk of currency intervention. The Australian dollar briefly rose to $0.7029 after the Reserve Bank of Australia raised its cash rate to a 15-year high of 4.60%.

US economic data due this week includes the PCE price index on Wednesday and nonfarm payrolls on Friday. Markets were pricing a 72.5% chance of a Federal Reserve rate hike in October, up from 57.6% a week earlier. Fed Governor Lisa Cook said late on Monday that inflationary pressures could persist in coming months, partly because of AI-related demand and higher oil prices.

Spot gold rose 0.4% early on Tuesday to $4,131 an ounce, after falling to its lowest level since August 5 on Monday. Gold remained close to a more than seven-week low as markets awaited US economic data and assessed the prospect of higher US interest rates.

Brent crude rose 1.6% to $107.0 a barrel early on Tuesday, while US West Texas Intermediate was at $94.00. Oil prices rose for a second session as concerns about Middle East supply disruption outweighed signs of recovering crude exports from the region.

Middle Eastern crude exports reached 12.8 million barrels a day in September, their highest level since February, helped by increased shipments from Saudi Arabia and the United Arab Emirates. Separate US and Iranian talks with mediators were also under way as efforts continued to end the seven-month war.