U.S. stocks closed higher Monday as investors looked past a sharp rise in oil prices and focused on a major development in the artificial-intelligence race, Anthropic's confidential filing for a potential initial public offering. The move reinforced investor confidence that AI remains one of the market's most powerful growth themes.
The Dow Jones Industrial Average rose 46.48 points, or 0.09%, to 51,078.9. The S&P 500 gained 19.97 points, or 0.26%, to 7,600.03, while the Nasdaq Composite climbed 114.19 points, or 0.42%, to 27,086.8.
Trading was far more volatile than the closing numbers suggested. Stocks opened under pressure after developments related to the Iran War pushed crude prices sharply higher. Brent crude settled near $95.30 per barrel, up 4.59% on the day, after reports indicated Iran had halted message exchanges with the United States while military tensions in the region continued to escalate. Just before 2 p.m ET, President Trump posted on Truth Social that "Talks are continuing, at a rapid pace," with Iran.
Oil's surge initially weighed on risk sentiment and helped drive the CBOE Volatility Index higher. The VIX finished at 15.95, up 4.11%, reflecting continued investor demand for downside protection despite the broader market advance.
However, the mood shifted as investors digested a major announcement from Anthropic. The company disclosed that it had confidentially submitted a draft Form S-1 registration statement to the Securities and Exchange Commission, laying the groundwork for a potential public offering. Anthropic said the timing of any IPO would depend on market conditions and the SEC review process.
The filing was viewed as another milestone for the rapidly expanding AI industry. Yahoo Finance reported that Anthropic has emerged as one of the leading competitors to OpenAI and has attracted significant backing from major technology companies and institutional investors. The prospect of a public listing added fresh momentum to AI-related stocks and helped support the Nasdaq throughout the afternoon session.
The development also reinforced a broader trend investors have been embracing in recent weeks: expanding exposure beyond a handful of mega-cap technology companies into the wider AI ecosystem. Traders increasingly are searching for opportunities among software firms, infrastructure providers, semiconductor suppliers, and emerging AI platforms that could benefit from the next phase of industry growth.