Federal Reserve Chair Kevin Warsh declined to provide specific interest-rate guidance ahead of the central bank's October policy meeting, while investors reportedly adjusted valuations for Anthropic's potential initial public offering downward. These developments occurred as U.S. stock futures hovered near flat levels on Friday, following a rebound in Wall Street equities from an artificial intelligence-driven selloff earlier in the week.
Warsh, speaking at an event in Thailand, offered an upbeat assessment of the U.S. economy, noting its resilience against tighter monetary policy. He stated he had discussed mounting inflationary pressures with global central bankers, remarking that it is "hard to be in a discussion" without hearing the same concerns about the surge in prices. Warsh maintained his stance against forward guidance, saying he does not "believe in saying now what I might do at the meetings that we have in the balance of this year." The Fed lifted borrowing costs by 25 basis points in September to cool price growth toward its 2% target. Markets are widely expecting the Fed to hold rates steady at its October 27-28 meeting, with a potential quarter-point hike anticipated for December.
In the technology sector, Reuters reported that some current and prospective investors in Anthropic are considering a lower valuation for the AI company after a financial disclosure this week. Investors who attended meetings in San Francisco on Wednesday discussed a valuation of roughly $1.5 trillion, down from a previously projected figure of around $2 trillion. The company, known for the Claude chatbot, has reportedly targeted an IPO as soon as November. Anthropic told investors that third-quarter revenue jumped 45% to $16.8 billion, a figure that analysts noted showed robust demand but a slower growth rate compared to the previous quarter.
Bloomberg News reported that Taiwan is considering stricter export controls on artificial intelligence chip sales to China to align with U.S. policies and address smuggling risks. The proposed measures aim to provide authorities with more legal tools to prevent the diversion of advanced hardware, specifically AI servers equipped with Nvidia chips, from Taiwan to China. Beijing has already opposed strict U.S. restrictions on AI chip exports first imposed in 2022, despite reports that Nvidia's advanced chips continue to reach China via smuggling routes through Southeast Asia.
Tesla unveiled a redesigned Roadster on Thursday evening at SpaceX's McGregor, Texas test facility. The vehicle demonstrated the use of SpaceX rocket technology to perform a controlled landing after jumping off a ramp at full inversion. CEO Elon Musk stated that production of the long-awaited sports car is set to begin in 2028. Tesla shares rose more than 3% in extended hours trade following the reveal. The car also flew over parked vehicles and a semitruck during the demonstration.
U.S. stock futures showed mixed signs on Friday morning. By 02:59 ET, Dow futures had risen by 75 points, or 0.1%, while S&P 500 futures ticked up by 7 points, or 0.1%. Nasdaq 100 futures remained broadly unchanged. The main averages finished higher on Thursday, recovering from a downturn fueled by concerns over debt financing for the AI boom and elevated borrowing costs. Shares of CoreWeave stabilized after a precipitous slide on Wednesday helped spark the global rout in AI stocks.
Analysts at ING noted that financial markets have calmed slightly after the CoreWeave bounce, but the debate between intensifying price pressures requiring tighter monetary policy and a tech correction requiring a softer policy outlook continues.