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Anthropic IPO Delay Sparks Market Relief Rally

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  Published in Stocks and Investing on Wednesday, February 25th 2026 at 4:42 GMT by Channel NewsAsia Singapore
      Locales: California, UNITED STATES

NEW YORK - February 25, 2026 - US software stocks experienced a significant upswing on Tuesday, buoyed by a surprising announcement from artificial intelligence (AI) startup Anthropic. The company revealed it would be postponing its initial public offering (IPO), a decision that triggered a wave of relief across the market and fueled a broad-based rally, particularly in established software giants.

Anthropic, a direct competitor to OpenAI and founded by former key personnel from that organization, had been widely anticipated to launch one of the year's most significant IPOs. Market analysts had predicted a potentially large valuation, and increasingly, concerns had grown regarding the ripple effect such an IPO could have on the broader AI landscape, specifically on the valuations of publicly traded software companies with substantial AI investments.

The fear stemmed from the potential for an overvaluation of Anthropic, especially given the current fervor surrounding AI. A lofty IPO price could have set an unsustainable benchmark, forcing investors to reassess the valuations of existing AI-focused software firms. This reassessment could have led to correction, potentially impacting companies already heavily invested in AI research, development, and implementation.

Tuesday's market performance demonstrated just how real those concerns were. Following the announcement that Anthropic would delay its IPO, leading software companies saw substantial gains. Adobe led the charge, surging 4.3%, followed by Salesforce, which climbed 3.8%. Microsoft, a major player in the AI space through its partnership with OpenAI and its own AI initiatives, also saw a healthy rise of 0.9%. The Nasdaq Composite Index, a key indicator for technology stocks, closed up 0.8% at 15,984.61 points.

The Dow Jones Industrial Average experienced a more modest gain of 11.44 points, or 0.03%, closing at 39,974.32 points. The S&P 500, a broader measure of market health, rose 0.37% to 5,293.57 points.

"The market had feared that Anthropic's IPO could have created a valuation headwind for other software companies," explained Michael Ash, managing director at J.P. Morgan Private Wealth. "This announcement has clearly eased those fears. Investors were worried about a potential 'reset' in valuations if Anthropic's IPO priced at an extremely high multiple. Now, they have some breathing room to assess the long-term potential of AI investments without that immediate pressure."

Analysts believe the decision by Anthropic likely stems from a confluence of factors. While the company hasn't publicly stated its reasons, speculation points to unfavorable market conditions, a desire to further solidify its financial footing, and potentially, a strategic move to avoid the intense scrutiny that comes with being a publicly traded company. The AI landscape is rapidly evolving, and Anthropic may prefer to operate with greater flexibility and privacy as it continues to develop its next-generation AI models.

The delay also avoids the inherent pressure of quarterly earnings reports and short-term shareholder expectations, allowing the company to focus on long-term research and development. This is particularly crucial in the AI field, where significant breakthroughs often require sustained investment and a long-term vision.

Beyond the immediate relief rally, the postponement of Anthropic's IPO could signal a broader trend in the AI sector. While numerous AI startups are still eager to go public, companies may become more cautious about timing their IPOs, prioritizing sustainable growth and profitability over rapid expansion. This could lead to a more measured and rational approach to valuations in the long run, benefitting both investors and the companies themselves. The situation highlights the inherent volatility and uncertainty surrounding the valuation of nascent technologies, especially in a field as dynamic as artificial intelligence. Investors will continue to watch Anthropic closely for any further developments regarding its IPO plans.