Anthropic’s IPO Looms as Tech Tumbles 4% or More on AI Costs

By Amara Osei

Late Thursday morning, the Nasdaq Composite and Nasdaq-100 traded at least 4% lower, MarketWatch reported, as Anthropic prepared for a potential IPO before Thanksgiving.

MarketWatch reported that Anthropic, the creator of Claude, is preparing for what could be one of the most anticipated IPOs in years. The timing would test investor appetite as markets become more discerning about AI spending, MarketWatch editor in chief Mark DeCambre said. Developing models and building their infrastructure both come expensive, DeCambre said.

What could derail Anthropic’s IPO?

MarketWatch said technology shares took a particularly hard beating as investors grew more anxious about AI buildout costs. The Democrats’ sweeping victories in the historic midterm elections raised the prospect of greater congressional scrutiny of data centers, DeCambre said.

• The Nasdaq Composite was down at least 4% in late-morning trade Thursday, MarketWatch reported.
• The Nasdaq-100 also lost at least 4%, according to MarketWatch.
• South Korea’s Kospi tumbled more than 5% as chip shares sold, following heavy selling across Asia, MarketWatch said.

Wednesday had gone differently: the Dow posted its biggest daily gain since April 2025 as Wall Street appeared to welcome the election results, MarketWatch said. MarketWatch described Thursday’s broad equity selloff as a sharp reversal as investors reassessed AI spending and election-driven scrutiny of data centers.

Why did Apple outperform Big Tech?

Apple’s stock jumped more than 5% Wednesday to record heights, MarketWatch said, solidifying the iPhone maker’s place as the world’s most valuable company. Christine Ji said the answer may lie in Apple’s limited AI spending, which she described as making Cupertino “a port in an AI storm.”

MarketWatch also said a slower approach to data-center builds after the midterms could help raise prices for Microsoft and Amazon. DeCambre framed Anthropic’s debut as a test of how much investors would pay for AI’s promise as its price tag draws concern.

What do the midterms mean for coverage and retirement?

Jaimy Lee’s MarketWatch analysis breaks down three changes coming for the Affordable Care Act. Health coverage is getting more expensive, and some Americans may face a choice between paying more or going without, Lee said.

Social Security faces a funding shortfall in about six years, MarketWatch said. A proposal backed by senators from both parties would eliminate the current $184,500 ceiling on earnings subject to payroll taxes. DeCambre said the Democratic midterm wins could inject fresh momentum, though bipartisan interest does not necessarily mean a deal.

How much financial insecurity do households face?

The Moneyist cited a 66-year-old nurse with less than $500 in the bank. The nurse receives $2,000 a month in Social Security and shares a two-bedroom apartment with a roommate, The Moneyist said. MarketWatch said tens of millions of people face little or nothing saved for retirement and no safety net.

Can hiring improve before Friday’s jobs report?

“The U.S. economy’s biggest engine is still humming, but it’s running into costly headwinds,” DeCambre wrote. The Institute for Supply Management reported that the services sector expanded in October even as companies grappled with stubbornly high costs. Hiring showed glimmers of improvement, DeCambre said, while ADP reported that private employers added 86,000 jobs last month.

The payroll processor ADP’s figure preceded Friday’s government October jobs report, which will provide a fuller view of a labor market DeCambre described as stuck in neutral.

Which related market stories did DeCambre flag?

DeCambre also pointed readers to three separate MarketWatch developments:

• A screen of 12 stocks described as good bets to beat the 10-year Treasury over the next decade.
• Hospital stocks’ rally while drug manufacturers brace for scrutiny, and what the Democratic wave means for healthcare.
• An analysis of what Trump can do without approval from a Democratic Congress.

Friday’s October jobs report is the next check on a labor market DeCambre called stuck in neutral. Anthropic’s pre-Thanksgiving IPO window is the next test of investor willingness to pay for AI’s promise amid anxiety about buildout costs and the prospect of greater scrutiny of data centers.