Stock Market Today: Nasdaq Jumps 0.8% as Anthropic IPO Filing Revives AI Trade; Dow Lags on Meta, Verizon Weakness

New York, Oct. 26, 2026 — U.S. stocks closed higher on Monday, with the Nasdaq Composite leading gains as Anthropic’s blockbuster IPO filing reinvigorated appetite for AI-linked shares, while the Dow Jones Industrial Average lagged amid weakness in Meta Platforms and telecom names.

The Nasdaq Composite rose 0.82% to close at 26,168.56 . The S&P 500 gained 0.70% to 7,677.10 . The Dow Jones Industrial Average added just 0.28%, settling at 52,361.27, as declines in Meta and Verizon offset strength in Tesla and industrials .

Why Did the Stock Market Rise Today?

1. Anthropic’s IPO filing sparked a broad AI rally. The AI lab disclosed surging revenue growth—up 1,304% year-over-year to $16.29 billion** in the first half of 2026—in its S-1 filing for a U.S. listing, with reports valuing the company at roughly **$1.5 trillion . The filing reassured investors that demand for AI infrastructure remains robust despite recent concerns about debt-fueled spending.

2. Oil prices eased on diplomatic efforts. Crude retreated after hitting a near six-month high last week, as Qatari mediators traveled to Tehran to help de-escalate regional tensions . Lower energy prices provided relief on the inflation front.

3. Semiconductor and optical stocks led the advance. The Philadelphia Semiconductor Index rose about 1% , with Lumentum jumping over 5% and Coherent gaining 2.8% . Nvidia and AMD each rose more than 2%, while Intel surged 4.5% .

Which Stocks and Sectors Moved the Most?

Tesla was a standout, surging 5.9% to a more than three-month high after Barclays upgraded the stock to “overweight” from “equal-weight” and raised its price target to $450** from **$370 . The move added over $85 billion to Tesla’s market capitalization .

Meta Platforms fell 1.8% after announcing plans to raise up to $95 billion in equity to fund its AI-related data center and infrastructure expansion, raising dilution concerns among shareholders .

Verizon weighed on the communication services sector—the day’s worst performer, down 1.42%—following its earnings report and amid growing competitive fears stemming from SpaceX’s wireless ambitions .

Neocloud stocks were mixed despite the broader AI rally. CoreWeave initially fell 2% and Nebius dropped 4.8% after Elon Musk posted on X that markets have “almost entirely shut off access to money” for companies without substantial revenue independent of AI data centers, predicting a neocloud shakeout . Both names later pared losses as the AI trade strengthened .

What Are Treasury Yields and the Fed Saying?

The 10-year Treasury yield hovered around 4.99% , holding below the 5% threshold for the first time since late September . The yield has declined for three consecutive weeks as investors sought safety amid equity volatility and AI-sector turmoil .

The Federal Reserve’s October 27-28 meeting is the week’s central event. Markets widely expect the Fed to hold rates steady in the 3.75%-4.00% range following September’s hike, with rate futures pricing a 90% probability of a pause . However, analysts expect the pause to be temporary, with a December hike still firmly in play .

What’s Next for Investors?

This week is the busiest of the third-quarter earnings season, with roughly a third of S&P 500 companies reporting, including Alphabet, Microsoft, and Amazon . Their results and guidance on AI capital expenditures will be scrutinized for evidence that massive investments are translating into tangible profits.

As Saxo’s Charu Chanana noted: “Strong AI demand alone may no longer be enough. The market wants proof of monetization, margins, and cash flow” .

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Key Takeaways (Quick Summary)

• Nasdaq rose 0.82% to 26,168.56, leading major indexes; S&P 500 gained 0.70%; Dow added just 0.28%
• Anthropic’s IPO filing revealed 1,304% revenue growth, reviving confidence in the AI trade
• Tesla surged 5.9% on Barclays upgrade to “overweight” with $450 price target
• Meta fell 1.8% after announcing a $95 billion equity raise for AI infrastructure
• Semiconductor index rose ~1%, with Nvidia and AMD up over 2%, Intel up 4.5%
• 10-year Treasury yield held near 4.99%, below the 5% threshold
• Fed expected to hold rates on Wednesday, with a 90% probability priced in
• Alphabet, Microsoft, and Amazon report this week, a critical test for AI spending returns