Key facts
- Nasdaq and S&P 500 futures rose on Monday.
- AI firm Anthropic forecast 2028 revenue between $190 billion and $200 billion.
- Megacap tech stocks like Amazon and Alphabet saw premarket gains.
- Chipmakers Micron Technology and Broadcom shares climbed.
- Traders are pricing in a lower probability of a Federal Reserve interest rate hike in September.
- The S&P 500 closed at a record high on Thursday.
Nasdaq and S&P 500 futures saw gains on Monday, driven by a robust revenue forecast from AI leader Anthropic, which bolstered technology stocks. Investors are also considering the possibility of fewer interest-rate hikes from the U.S. Federal Reserve, juxtaposed with ongoing Middle East tensions.
Anthropic, reportedly preparing for an IPO, has forecast its 2028 revenue to be between $190 billion and $200 billion, according to sources familiar with the company's financials. This news contributed to premarket increases in megacap and growth stocks, with Amazon and Alphabet showing gains.
Chipmakers experienced a surge, with Micron Technology and Broadcom shares rising. Tech stocks, particularly in the semiconductor sector, have faced recent pressure due to investor concerns about the return on heavy AI investments. However, a strong second-quarter earnings season has supported the Nasdaq's advance toward record highs.
Market participants are closely watching for Nvidia's upcoming earnings report for indications on the sustainability of the tech-driven momentum. Nvidia's shares saw a slight increase after a report indicated scaled-back plans for an OpenAI data center project, potentially easing concerns about circular financing within the sector.
Futures trading showed Dow E-minis down 0.13%, S&P 500 E-minis up 0.14%, and Nasdaq 100 E-minis up 0.49% in early trading. Meanwhile, geopolitical developments include Iran's call for the U.S. to accept defeat and President Donald Trump's remarks on Tehran and fuel prices, with no immediate signs of progress toward ending the conflict or resuming traffic through the Strait of Hormuz.
Economic data, including softer inflation figures and a decline in retail sales, has led traders to reduce the probability of a September interest-rate hike by the Federal Reserve. The market is now pricing in approximately a 31% chance of a 25 basis point hike, a significant decrease from a week prior. This reduced expectation, coupled with robust earnings, propelled the S&P 500 to a fresh record close on Thursday.
This week's earnings calendar includes reports from major retailers Walmart and Home Depot, as well as chipmaker Analog Devices. Thus far, 84.8% of S&P 500 companies that have reported earnings have surpassed analyst estimates.
In other market movements, U.S.-listed shares of Argentina's Vista gained 7.1% following news of Peter Thiel's acquisition of a 1% stake in the oil company.