Global equity markets are climbing on the back of technology shares, with US stock index futures posting modest gains. A strong revenue performance from Anthropic PBC has further cemented expectations that massive artificial intelligence spending will persist, while the dollar briefly touched a three-month low.
As of 6:59 a.m. in New York, S&P 500 futures were up 0.1%, Nasdaq 100 futures advanced 0.6%, and Dow Jones Industrial Average futures ticked 0.1% higher. Storage and semiconductor firms, including SanDisk Corp. and Micron Technology, are trading up in pre-market activity. After a volatile July that saw investors pivot toward economically sensitive sectors, AI-related stocks are reasserting their dominance in the market.
Documents show that Claude developer Anthropic has told potential investors its second-quarter revenue grew at least 14-fold year-over-year, underscoring sustained robust demand for AI technology. This week, market attention will also turn to the health of the US consumer, with retail giants like Walmart and Home Depot set to report earnings. Recent data indicates that US consumer spending cooled in July following a strong first half, while households have grown increasingly concerned about a deteriorating business climate and rising inflation.
Laura Cooper, global investment strategist and head of macro credit at Nuveen, noted that with hiring slowing and borrowing costs climbing, any signs of stress in corporate outlooks could challenge the narrative of resilient economic growth. The Federal Reserve's July monetary policy meeting minutes may also draw scrutiny. Although traders have pushed back expectations for the next 25-basis-point rate hike to January, bond investors are increasingly worried about the government's heavy borrowing and fiscal trajectory.
Cooper added that the recent string of softer economic data reduces the urgency for near-term policy tightening, potentially diminishing the significance of the meeting minutes. However, with the Fed reluctant to telegraph its stance prematurely, any signals could carry outsized impact.