U.S. stocks closed: Neocloud, storage and optical communication stocks fell across the board, with IREN down nearly 8% and NVIDIA dropping over 5%.

Australian retail investors will gain access to the IPO of artificial intelligence giant Anthropic PBC, with the company targeting a $1.4 trillion valuation for the offering. According to documents filed with Australia’s securities regulator on Wednesday, individual investors in Australia can subscribe for Anthropic shares via participating brokers starting this Wednesday. The offering is set to close on November 17, and the stock is scheduled to list on the Nasdaq on November 20. Anthropic plans to raise up to $90.4 billion through this IPO and private placement, with a share price range of $70 to $78.

U.S. October CPI rose 0.4% month-on-month, exceeding market expectations of 0.3%. Coupled with hawkish signals from Federal Reserve Governor Waller, this pushed U.S. Treasury yields higher across the board. The 10-year U.S. Treasury yield climbed to 5.012%, while the 2-year yield reached 4.759%. Markets now assign an 86% probability to the Federal Reserve delivering a 25-basis-point rate hike in December, with a 14% chance of a 50-basis-point hike. Waller noted that if inflation runs notably above expectations, the Fed may need to implement larger policy moves. European bond markets were also impacted: Germany’s 10-year Bund yield rose to 3.307%, its highest level since November 3.

According to diplomatic sources cited by The Jerusalem Post, Qatar's Prime Minister Mohammed bin Abdulrahman Al Thani told G7 foreign ministers in Paris that Doha has secured at least two more weeks to continue facilitating an understanding between the U.S. and Iran, aimed at preventing a new U.S. strike on Iran. However, major disagreements remain between the two sides, with key issues unresolved, including the timeline for lifting maritime blockades, nuclear matters, and the unfreezing of Iranian assets. Al Thani emphasized that both the U.S. and Iran need to rebuild mutual trust to return to the negotiating table. Earlier, Al Thani had met with Trump and Vice President Vance at the White House.

Beating AI News Flash: According to the Financial Times, U.S. financial regulators have delayed approving futures contracts tied to AI chip rental prices, derailing exchanges' plans to launch the first computing power futures market. Such contracts allow traders to bet on AI chip rental prices. Per sources familiar with the matter, the U.S. Commodity Futures Trading Commission (CFTC) has extended the review period for these contracts by at least 60 days, pushing related trading activities to at least early 2027. The decision has not been made public. CME Group had previously hoped to launch as early as October GPU futures contracts tied to the rental prices of two NVIDIA (NVDA.O) chips, the H100 and B200. The relevant price index was designed by startup Silicon Data. The delay comes as regulators solicit public input on managing risks in the emerging computing power market. Currently, online trading platforms already offer spot trading of computing power prices, but no public futures market for longer-term contracts exists yet.

Federal Reserve Vice Chair for Supervision Michelle Bowman said inflationary pressures persist, while the labor market is stabilizing, leaving room for further declines in inflation. She projected that October’s core PCE price index rose 3.3% year-over-year, driven mainly by higher energy prices and AI-related demand, noting that the lack of progress on inflation is not due to an overheating labor market. Bowman expects core PCE to converge toward the Fed’s 2% target next year as the AI construction boom and pressures from the Middle East conflict gradually ease. On policy, Bowman pointed out that recent declines in stock prices, rising U.S. Treasury yields, and a stronger U.S. dollar have tightened financial conditions, while the economy has strengthened so far this year. She emphasized that financial conditions have already tightened, adding that against this backdrop, the benefits of further monetary policy tightening must be carefully weighed against the costs it would impose on interest-rate-sensitive sectors. Whether AI demand can persist and how geopolitical risks evolve will be key factors shaping monetary policy direction in the coming months. She did not explicitly call for a rate hike, but stressed that the Fed still needs to work to bring inflation back to its 2% target.

According to the latest prospectus released on Tuesday, the seven co-founders of Anthropic PBC will collectively sell shares worth $1.75 billion in next week's initial public offering (IPO). Calculated based on the midpoint of the IPO's price range, each co-founder plans to sell shares worth approximately $250 million. According to the Bloomberg Billionaires Index, at this valuation, each co-founder's net worth will reach around $180 billion. The San Francisco-based company is seeking to raise up to $90.4 billion through its IPO and private placement, corresponding to a valuation of roughly $1.4 trillion. Per deal terms reviewed by Bloomberg, the IPO is scheduled to be priced on November 18 and start trading the next day.