Anthropic Files for IPO, Chip Stocks and Optical Communications Sector Surge

*All three major stock indices rose across the board, with tech stocks leading;

*Medium- and long-term U.S. Treasury yields fluctuated in a narrow range, with the 10-year Treasury yield holding below 5%;

*The Nasdaq Golden Dragon China Index rose 0.63%.

U.S. stocks advanced across the board on Monday, as semiconductor manufacturers rebounded after Anthropic's initial public offering application rekindled investors' enthusiasm for AI trades.

At the close, the Dow Jones Industrial Average rose 146.42 points, or 0.28%, to 52,361.58; the Nasdaq Composite rose 0.82% to 26,169.38; and the S&P 500 rose 0.70% to close at 7,676.77.

[Performance of Popular Stocks]

Star tech stocks were mixed. Tesla rose 5.2% to a three-month high after Barclays upgraded its rating to "Overweight." Meta fell nearly 1.9% as the company plans to raise $95 billion to support its AI investments.

The Philadelphia Semiconductor Index rose nearly 3%. Nvidia, Broadcom and AMD all gained more than 2%.

Memory chip names strengthened, with SK Hynix up 4.09%, Western Digital up 3.63% and Micron Technology up 2.95%.

The optical communications sector performed well, with Lumentum and Coherent rising about 8% and 6%, respectively.

SpaceX fell 0.40%. The company's CEO, Elon Musk, said over the weekend that the satellite and rocket launch company had completed a $40 billion AI chip debt deal.

The Nasdaq Golden Dragon China Index rose 0.63%. Baidu rose 0.84%, Alibaba rose 0.61%, NetEase fell 0.24%, JD.com fell 0.47% and Pinduoduo fell 1.15%.

[Market Overview]

AI upstart Anthropic publicly filed for an initial public offering (IPO), with investors betting the offering will inject new vitality into the sluggish tech sector. The AI company behind Claude reported revenue of $16.29 billion for the first half of the year through June, up 1,304% from $1.16 billion a year earlier. The company plans to list on Nasdaq under the ticker symbol "ANT."

The news eased some concerns about AI trades, which have been in a slump in recent weeks amid growing worries that the sharp increase in data center spending is unsustainable. The S&P 500 and Nasdaq are on track for a consecutive weekly decline. Chipmakers are in a bear market, with the Philadelphia Semiconductor Index down about 25% from its high; the ETF has fallen 13% this month alone.

"The market needs this, just like it needed SpaceX at the time," Jay Woods, chief market strategist at Freedom Capital Markets, said of Anthropic. "This will greatly boost confidence, and I expect demand to persist because people have waited for and discussed this for a long time."

Wall Street is entering the peak week of earnings season, with 163 S&P 500 companies set to report third-quarter results this week. Investors are looking to the performance of giants Google, Amazon and Microsoft, which will be read as a signal of whether massive AI investments are translating into growth.

In addition, the Federal Reserve will announce its latest interest rate decision on Wednesday local time. Federal funds rate futures trading shows policymakers have a 90% probability of keeping rates in the current target range of 3.75% to 4%.

Medium- and long-term U.S. Treasury yields fluctuated in a narrow range, with the benchmark 10-year Treasury yield edging up 0.1 basis point to 4.987% and the 30-year Treasury yield falling 1.4 basis points to 5.300%.

On the Middle East situation, according to CCTV News, the U.S. military is prepared for a new round of large-scale strikes on Iran, and U.S. President Trump may issue an order for action after the U.S. midterm elections in November.

CNN, citing U.S. officials, reported that the U.S. forces currently deployed in the Middle East are sufficient to carry out a new mission to strike Iran, and that after Trump gives the order, the U.S. military could launch a large-scale operation within 96 hours. Compared with previous strikes on targets such as radar and missile launchers, the scope of the new round of action may expand. U.S. Central Command and senior Pentagon officials are drawing up a list of proposed targets, including Iran's energy infrastructure, military sites and nuclear facilities.

The report, citing current and former U.S. officials, said it is only "a matter of time" before Trump issues an order for action. He may order it before the end of this year, most likely after the U.S. midterm elections.

On the economic data front, the Chicago Fed's monthly National Activity Index rose to 0.07 from -0.08 in August, while the market had expected a decline to -0.10. The Dallas Fed's monthly manufacturing index rose to 13.4 in October from 9.8 in September, better than the market expectation of 8.8.

[Commodities Performance]

International oil prices fell as the market focused on the prospects for diplomatic peace talks. The December light sweet crude futures contract on the New York Mercantile Exchange fell $1.51 to settle at $101.76 per barrel, a decline of 1.46%; the December London Brent crude futures contract fell 91 cents to settle at $115.81 per barrel, a decline of 0.78%.

Precious metals strengthened, with COMEX gold futures for October delivery on the New York Mercantile Exchange rising 0.78% to $4,022.30 per ounce and COMEX silver futures rising 0.74% to $54.10 per ounce.