Shares in the technology sector extended their rebound, lifting the Nasdaq to a second straight session of gains on the back of the Anthropic effect, after that news had already boosted global tech names overnight.
Attention is now shifting to the Federal Reserve, where the market broadly expects a hawkish hold at this week's policy meeting, a stance that would almost certainly set the stage for a December rate hike.
What is unfolding
The optimism sparked by Anthropic's blockbuster IPO announcement continues to support the technology sector, and investors may be set for a run in tech stocks. The news had earlier driven AI-related shares higher across Asia and Europe.
Over the past few weeks, a debt-fueled capital expenditure supercycle has sent popular AI names tumbling, leaving the AI industry steeped in a "buy now, regret later" mood. Anthropic's blockbuster Nasdaq listing next month will test investors' appetite for risk.
The fine print holds surprises
The S-1 prospectus, which runs to more than 300 pages, discloses a complex dual-class voting structure that leaves ordinary retail shareholders with almost no ability to check the co-founders.
Knock-on effects
Should the IPO underperform expectations, the Anthropic listing could trigger a broader revaluation of the technology sector.
Competing with tech stocks for the market's attention is the Federal Reserve. The two-day policy meeting opens today, with the decision due at 2pm US Eastern Time on Wednesday.
What the event means
With just one week to go before the US midterm elections but inflation still stubbornly high, this meeting is all but certain to deliver a hawkish pause.
How the market reads it
A December rate hike is already priced into trading. According to the CME FedWatch tool, the market assigns a 90% probability to a December increase.
Market focus
Earnings watch
US pre-market trading was broadly muted this morning, while volatility picked up in European equities.
HSBC posted a sharp rise in third-quarter profit, but the result missed market expectations and came alongside conservative guidance, sending its London and Hong Kong shares sharply lower.
Analysts said investors had expected the bank to earn more during the favorable stretch of the rate-hiking cycle, while also benefiting from the sweeping cost-cutting drive pursued by chief executive Georges Elhedery.
Novartis raised its profit outlook on Tuesday. The Swiss drugmaker said it still delivered revenue growth in a difficult environment marked by fierce generic competition, and its shares rose on the Zurich exchange.
A view from the top
Novartis chief executive Vas Narasimhan said in an interview on the European financial forum program that although "the patent cliff is a reality this industry cannot avoid," he is confident in the company's raised guidance.
Today's earnings highlights
Planes and drinks
A cluster of heavyweight earnings landed this morning. Coca-Cola reported its third-quarter results, posting a solid performance even as North American demand weakened. Its shares have climbed 32% so far this year, outpacing the S&P 500.
Outlook
This marks the beverage giant's third consecutive quarter of raising its full-year guidance, and its shares rose before the open.
Boeing has just released its results, with its third-quarter loss narrowing.
Exclusive
Reporter Phil LeBeau will interview chief executive Kelly Ortberg on the Wall Street live program at 9am US Eastern Time. The executive admitted to investors last month that stabilizing production of the 737 MAX was taking "longer than expected."
Elections and the economy: 7 days to the midterms
Just one week remains until the US midterm elections.
Polling
The survey reveals the biggest fears Democrats and Republicans hold about each other, signaling a society that may be sliding into "outright polarization." On 2026-10-25, at an event venue in Port Huron, Michigan, US President Trump attended a rally to campaign for Republican Senate candidate and former congressman Mike Rogers.
Final note
Microsoft announced on Monday a voluntary severance package for a large group of employees, seeking to balance its heavy investment in AI infrastructure against capital efficiency. The software giant introduced a new voluntary departure program for employees at certain levels, level 70 and below, in the United States, Canada, India, and the United Kingdom.
An internal source who asked not to be named said roughly 60,000 people are eligible to apply, about 27% of Microsoft's total workforce of 223,000.
Comments