Key facts
- Anthropic filed for a US IPO, potentially valuing the company at over $1.5 trillion.
- Meta plans a record $95 billion equity raise for AI expansion.
- SpaceX secured a $40 billion deal for AI chip funding.
- Brazil's financial assets plunged after Lula's election win.
- The Brazilian real fell 8.5%, its largest drop since 1999.
- US stocks rose, with the Nasdaq up 0.8%, S&P 500 up 0.7%, and Dow up 0.3%.
Stocks mostly rose on Monday, with technology and AI-related shares leading the gains, as investors looked ahead to more Big Tech earnings reports later in the week. Weaker oil prices also contributed to a more positive risk appetite. However, Brazil's financial markets experienced a sharp downturn following the unexpected victory of left-wing incumbent Luiz Inacio Lula da Silva in the presidential election.
In the AI sector, Anthropic filed for a US IPO, potentially valuing the company at over $1.5 trillion. Meta announced plans for a record $95 billion equity raise to fund its AI expansion, and SpaceX secured a $40 billion deal for AI chip funding. Despite concerns about the immense capital required for AI development, these announcements temporarily boosted investor sentiment.
Brazil's markets reacted negatively to Lula's win, with the real experiencing its largest fall since 1999. The Philippine peso also hit a record low against the dollar. The US dollar index saw a slight increase.
Central banks in developed economies are set for a busy week, with half of the G10 central banks scheduled to announce interest rate decisions. While New Zealand and Canada are expected to raise rates by 25 basis points, the US, Eurozone, and Japan are anticipated to hold rates steady but may signal future increases.