[New York Stocks] Anthropic Sparks AI Investment Hopes, Boosting Chip Stocks; Major Indexes Close Higher

Broadcom Announces Large-Scale AI Investment Plan
Oil Prices Fall on Reports of Iran's Leaders Discussing Conditions to End the War

On Tuesday, October 27 (local time), all three major U.S. stock indexes closed higher. Semiconductor stocks continued to rally on optimism about AI investment following Anthropic's filing of an IPO registration statement with Nasdaq the previous day. Falling oil prices also supported investor sentiment.

The Dow Jones Industrial Average closed at 52,377.57, up 15.99 points (0.03%) from the previous trading session. The S&P 500 rose 45.83 points (0.60%) to 7,722.60, while the tech-heavy Nasdaq Composite gained 308.42 points (1.18%) to close at 26,477.81.

Semiconductor stocks led the day's gains. Buying picked up following news of Broadcom's large-scale investment in AI infrastructure. The move was also driven by reports that major banks, including Bank of America (BofA), Citigroup and Morgan Stanley, along with Blackstone, had agreed to raise $63 billion to support AI company Anthropic's purchase of Broadcom technology.

Anthropic's filing the previous day for an IPO to list on Nasdaq also boosted investor sentiment toward AI-related stocks. If the listing succeeds, it would be another major tech IPO this year, following SpaceX's in June.

Although concerns have recently emerged about the profitability of expanded AI investment, technology stocks are once again leading the market higher. Jedd Ellerbrook, a portfolio manager at Argent Capital Management, said, "The market periodically worries about AI spending, but technology stocks tend to lead the rally again in the end. It looks as though a switch that had been off for the past two weeks was turned back on during the first two days of this week."

He added that data center companies remain strongly committed to expanding investment, but cautioned that volatility in capital markets is a potential risk factor.

Falling oil prices also supported stocks. Oil prices declined following reports that Iran's new leader Mojtaba Khamenei and Mohsen Rezaei, the country's top security official, had discussed conditions for ending the war with the United States.

On the New York Mercantile Exchange, U.S. West Texas Intermediate (WTI) crude for December delivery closed at $99.90 per barrel, down 1.83% from the previous session. On the ICE Futures Exchange, Brent crude for December delivery settled at $113.88 per barrel, down 1.67%.

Corporate earnings reports also affected stock prices. U.S. airline JetBlue surged 19% after reporting a third-quarter net loss that exceeded market expectations but forecasting improved profitability in the fourth quarter. Logistics company UPS also rose more than 5% after its third-quarter results beat market forecasts.

The market is focused on the Fed's interest rate decision, due on October 28. The Fed will hold its two-day FOMC meeting starting today. While a rate hold is widely expected, investors are watching for clues that could help them gauge the possibility of another rate hike this year.

Manager Ellerbrook said, "Under Fed Chair Kevin Warsh, this meeting looks likely to pass with few major developments, which is unusual, because the midterm elections are scheduled for next week." He added, "The December meeting will be tense again."

Gold prices also rose. U.S. gold futures for December delivery gained 0.69% to $4,066.40 per ounce. The decline in oil prices, amid hopes for a ceasefire deal in the Middle East, helped ease inflation concerns.

Peter Grant, chief metals strategist at Zaner Metals, said, "Lower oil prices are positive for gold because they ease inflation concerns and could somewhat temper the Fed's monetary tightening stance."

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