Anthropic IPO Buoys Sentiment... South Korean Stocks Set to Open Higher [Good Morning Market]

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U.S. stocks rose across the board following news that artificial intelligence (AI) company Anthropic plans to go public. South Korea's stock market is also expected to open higher on October 27.

A display board shows the KOSPI, KOSDAQ and won-dollar exchange rate at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on the 26th, as the KOSPI opened lower after falling below the 5,500 mark. Photo by Cho Yongjun

On October 26 local time, the Dow Jones Industrial Average closed at 52,361.58, up 146.42 points, or 0.28%, on the New York Stock Exchange (NYSE). The S&P 500 rose 53.09 points, or 0.70%, to 7,676.77, while the tech-heavy Nasdaq Composite gained 214.04 points, or 0.83%, to finish at 26,169.38.

Investor sentiment recovered as tech stocks rebounded across the board after Anthropic, a leading AI company, filed to go public. Anthropic, which developed the AI model Claude, filed a registration statement for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) on Monday, formally beginning the listing process.

Investor sentiment had been subdued amid growing concerns on and off Wall Street over the so-called "AI bubble," as major technology companies poured vast sums into AI without generating clear returns. However, Anthropic's IPO filing helped ease market skepticism and was seen as an opportunity to assess the tangible results of AI investment to date. Market participants showed strong interest in Anthropic's solid financial health.

Anthropic is reportedly targeting a valuation of up to $2 trillion (about KRW 2,700 trillion) and plans to raise around $100 billion (about KRW 133 trillion) through the IPO. If completed as planned, the offering is expected to be the largest-ever debut on the U.S. stock market.

Among individual stocks, Tesla jumped 5.21% as Barclays upgraded its rating and expectations grew for a merger with SpaceX. The stock reached its highest level in about three months.

The Philadelphia Semiconductor Index (SOX), which comprises major semiconductor stocks, also rose 2.82%, showing strong momentum. Micron gained 2.98%, while AMD rose 2.80%. Nvidia and Broadcom advanced 2.39% and 2.33%, respectively. SK hynix's American depositary receipts (ADRs) also climbed 4.09%. Meta Platforms, meanwhile, fell 1.88% after disclosing plans to raise up to $9.5 billion to fund AI investments.

South Korea's stock market is therefore expected to attempt a rebound, supported by improved sentiment toward U.S. AI and semiconductor stocks following Anthropic's IPO filing, as well as easing gains in West Texas Intermediate (WTI) crude amid efforts by Middle Eastern countries to hold four-party talks. Earnings announcements this week from major technology and semiconductor companies, including Alphabet and Microsoft, as well as the U.S. Federal Reserve's Federal Open Market Committee (FOMC) meeting, are among the key factors to watch.

Han Ji-young, a researcher at Kiwoom Securities, said, "Technical pressures remain, with the KOSPI's moving averages forming a bearish alignment on the charts." However, she added, "The possibility of a turnaround remains open, with key events scheduled for the middle of the week and afterward, including the FOMC meeting and earnings announcements from major technology and semiconductor companies." She said, "Uncertainty surrounding U.S. AI beneficiaries, which had acted as a catalyst for the market correction, is gradually easing, while KOSPI earnings consensus estimates have remained largely unchanged. At this point, rather than further reducing equity exposure, investors should prioritize maintaining their existing positions in anticipation of improved price resilience and a potential rebound."

This content was produced with the assistance of AI translation services.