Key Takeaways
- Anthropic is reportedly finalizing deals with Morgan Stanley (MS) and Goldman Sachs (GS) for a blockbuster IPO that could value the AI startup at $2 trillion.
- The FDA granted accelerated approval to AstraZeneca’s (AZN) Etcamah (camizestrant) for advanced breast cancer, marking a milestone in mutation-guided therapy.
- US markets closed lower on Friday, with the Dow Jones falling 287.77 points (0.54%) to 53,398.34 as investors weighed a strong jobs report against future interest rate paths.
- The US Justice Department officially refuted reports that it instructed its Antitrust Division to pause cooperation with the Canadian government, calling the claims "false."
Anthropic Targets Record-Breaking $2 Trillion Valuation
AI powerhouse Anthropic is nearing a deal to name Morgan Stanley (MS) as the "lead left" underwriter and Goldman Sachs (GS) as the stabilization agent for its upcoming initial public offering. According to the Financial Times, the company could publicly file its prospectus as early as next week, targeting a valuation of $2 trillion or more. This offering would rival the scale of recent major listings like SpaceX and represents a significant test of investor appetite for high-growth artificial intelligence ventures.
The company is also reportedly securing a $15 billion revolving credit facility to bolster its balance sheet ahead of the debut. Other major financial institutions, including JPMorgan Chase (JPM), Citigroup (C), and Barclays (BCS), are expected to take senior roles in the deal. Market analysts suggest the IPO could take place as early as October 2026, potentially beating rival OpenAI to the public markets.
FDA Approves AstraZeneca’s Etcamah for Advanced Breast Cancer
The US Food and Drug Administration (FDA) has granted accelerated approval to AstraZeneca’s (AZN) Etcamah (camizestrant) in combination with CDK4/6 inhibitors. The treatment is indicated for adult patients with HR-positive, HER2-negative advanced or metastatic breast cancer who exhibit the ESR1 mutation. This mutation is a common form of acquired resistance, appearing in nearly 40% of patients after initial endocrine therapy.
Clinical data from the SERENA-6 trial supported the decision, showing that Etcamah improved median progression-free survival to 16 months, compared to 9.2 months for the standard of care. This approval is notable as the first for a cancer therapy guided by the detection of a resistance mutation in circulating tumor DNA (ctDNA) before traditional imaging shows disease progression. The FDA also authorized Guardant Health’s (GH) Guardant360 CDx as the companion diagnostic for patient selection.
Markets Retreat Following Strong Labor Data
Wall Street indices finished the session in the red on Friday as a robust August jobs report complicated the outlook for Federal Reserve policy. The S&P 500 slipped 32.62 points (0.42%) to close at 7,715.09, while the tech-heavy Nasdaq fell 72.13 points (0.27%) to 26,511.93. Despite the daily dip, major indices remained up for the week, supported by earlier comments from Fed officials suggesting a potential pause in rate hikes if inflation remains stable.
Individual stock performance was mixed, with Apple (AAPL) weighing on the tech sector following reports of production volume issues for its upcoming foldable devices. Conversely, Micron Technology (MU) saw gains after announcing plans to double production of its AI-focused high-bandwidth memory. Traders are now shifting focus to next week's consumer and producer price indices for further clues on the Fed's September 15-16 meeting.
DOJ Denies "Pause" on Canada Antitrust Cooperation
The US Justice Department (DOJ) issued a firm denial on Friday regarding reports that it had ordered a halt to antitrust cooperation with the Canadian government. The department characterized the report as "false," clarifying that while a specific meeting was delayed to allow for more preparation, no broad directive to stop work was ever issued.
The initial report, which surfaced amid an escalating trade dispute between Washington and Ottawa, had suggested that internal emails directed officials to pause all engagement on policy issues. The clarification comes as both nations continue to navigate complex trade tensions involving tariffs on billions of dollars worth of goods.
Federal Reserve Releases Weekly H.8 Banking Data
The Federal Reserve released its weekly H.8 report, providing the latest snapshot of assets and liabilities for commercial banks in the United States. The data, which tracks bank credit, loans, and leases, showed that total assets for all commercial banks stood at approximately $25.65 trillion as of late August. The H.8 release remains a critical tool for economists monitoring the health of the US banking system and the flow of credit to businesses and consumers.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.