AI Optimism Boosts Tech Stocks Amid Ongoing Oil Price Pressures

The US stock market opened mostly in the red on Monday as investors weighed renewed optimism around artificial intelligence against higher oil prices and continued tensions in the Middle East.

The Dow Jones Industrial Average fell by 167 points, or 0.3%, while the S&P 500 declined by 0.12%. The Nasdaq Composite was slightly in the green at 0.01%.

The recent optimism surrounding AI is driven by reports of strong revenue growth at Anthropic, an AI company preparing for an initial public offering. According to people familiar with its financials, Anthropic expects revenue of roughly $190 billion to $200 billion in 2028, with its second-quarter revenue exceeding $11.5 billion.

Technology shares were among the stronger performers in trading, with Micron Technology rising more than 4% and Amazon falling. Apple's shares also gained slightly. Nvidia is scheduled to report its results next week, with investors expected to look for evidence that demand for AI infrastructure remains strong.

The reduced expectations for higher interest rates have supported technology shares, which are particularly sensitive to rate hikes. The Federal Reserve's next policy decision will be closely watched, with traders pricing in about a 31% probability of a 25-basis-point hike next month.