Anthropic’s Upcoming IPO is Buoying Markets After Steep Losses. Stocks Rebounded.

Stocks climbed on Monday as investors bought the dip following a string of losses, buoyed by Anthropic's latest step toward making its IPO.

The Dow Jones Industrial Average gained 0.29%, while the S&P 500 did so 0.70%. The tech-heavy Nasdaq Composite overperformed, climbing 0.82%.

Anthropic is asking investors to finance its artificial intelligence ambitions while warning that its technology could cause a catastrophe so costly that insurance might be unable to cover the damage.

The developer of Claude disclosed the risk in paperwork made public Monday for its planned initial public offering. The prospectus outlines potential real-world harm from advanced AI, including systems attempting to avoid shutdown, and acknowledges that contractual protections may not shield the company from legal liability.

Anthropic devoted 94 pages of its registration statement to risk factors. Among them was a warning that the scale of damage from a catastrophic AI incident could leave the company unable to secure sufficient insurance. The filing also suggested potential losses could exceed the capacity of an individual insurer and possibly the insurance industry collectively.

The disclosures place safety concerns at the center of Anthropic's anticipated stock market debut. The company plans to list on Nasdaq under the ticker ANT, although the initial prospectus does not specify an offering price.

Elsewhere, Microsoft has become the latest large company to reduce its workforce over the artificial intelligence boom, offering buyouts to tens of thousands of employees.

The company said that some 60,000 employees are eligible for the buyout. Those reached are in the U.S., Canada, India and the UK and have an experience level of 70 or below.

Amy Coleman, Microsoft's executive vice president and chief people officer, said in a memo that the program "reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter."

"This builds on what we learned earlier this year through the Voluntary Retirement Program," she added. Those who will accept the offer must make the decision over the next weeks and will leave at the end of the year.

In the geopolitical realm, Israeli Prime Minister Benjamin Netanyahu pushed President Donald Trump to launch strikes against Iran before the countries' elections, but he has chosen to delay any action for now, according to another report.

"Netanyahu really wanted and tried to convince Trump for a joint attack in Iran before the elections, and Trump did not give a green light," an Israeli source told CNN.

Trump has not made reference to the alleged requests, but did say on Sunday that he is near deciding whether to make a deal with Tehran or "finish it off." "Do I finish it off, which would be very easy to do, or do I make a deal? It's getting to be decision time," he told Fox News.