Nasdaq and S&P 500 futures gained on Monday after a strong 2028 revenue forecast from AI leader Anthropic lifted technology stocks. Traders also pared back the odds of a Federal Reserve rate hike next month, even as elevated oil prices tied to the Iran conflict kept inflation concerns alive.
Nasdaq and S&P 500 futures rose on Monday as a strong revenue forecast from AI leader Anthropic supported technology stocks. Reuters reported on Friday that Anthropic, which is preparing for its IPO, forecast 2028 revenue of roughly $190 billion to $200 billion, according to two people familiar with the company's financials.
Chip stocks and megacaps climb
Most megacap and growth stocks traded marginally higher in premarket trading. Amazon and Alphabet added 1.2% and 0.6%. Chipmakers also rose, with shares of Micron Technology and Broadcom gaining 3% and 1.1%, respectively.
Concerns over the payoff from AI investments have battered chip stocks recently. However, robust quarterly results and forecasts signaling resilient demand have brought the tech-heavy Nasdaq closer to record highs. Markets will keep a close eye on results from chipmaker Nvidia, the most valuable company in the world, next week for signs on whether the tech-driven momentum can last.
Nvidia edged up 0.6% after a report said it has scaled back plans to support a proposed OpenAI data center project in Ohio, easing worries about circular financing in the sector.
Rate-hike odds narrow, but oil keeps inflation risk alive
A batch of soft inflation data along with a surprise decline in retail sales helped traders dial back the odds of an interest-rate hike by the U.S. central bank at its September meeting, pushing the S&P 500 to a record high last week. Traders are now pricing in a nearly 31% chance the Fed will raise rates by 25 basis points next month, sharply lower than the near-even chances of a hike versus a hold a week ago, according to CME's FedWatch tool.
Still, the lack of forward guidance from Fed Chair Kevin Warsh has brought economic data under greater scrutiny, while elevated oil prices from the Iran conflict stoke inflation fears. Iran called on the U.S. to accept defeat on Saturday. According to Investing.com, President Donald Trump referred to Tehran as "very evil" and told Americans to prepare for continued high fuel prices as a result of the war.
Earnings season nears its close
Markets will turn to a new round of quarterly results later this week, with retail bellwether Walmart and home improvement retailer Home Depot among the few names left to report in the current earnings season. So far, 453 companies in the S&P 500 have reported earnings, with 84.8% beating analysts' estimates, according to LSEG IBES data.
Source: Investing.com
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