Traders work on the floor of the New York Stock Exchange (NYSE), May 3, 2023.
Brendan McDermid | Reuters
Stock futures were flat in overnight trading Thursday after markets rallied on the back of the latest IPO debut.
Stocks are coming off a winning session as Wall Street applauded a possible end to an extended technology IPO drought and assessed a fresh batch of economic data. The Dow jumped 331.58 points, or 0.96%, rising for the first time in three days and notching its best daily performance in over a month. The S&P 500 added 0.84%, while the Nasdaq Composite climbed 0.81%.
Arm Holdings soared nearly 25% during its market debut Thursday. The stock opened above its $51 per share IPO price and closed at $63.59. Elsewhere, the headline producer price index grew 0.7% in August, coming in above economists’ expectations for 0.4%, per Dow Jones. However, the core PPI climbed by 0.2%, in line with estimates.
“Core inflation still seems to be trending in the right direction,” said Mona Mahajan, a senior investment strategist at Edward Jones. “I think that’s a positive given the Fed does tend to look at core inflation, and historically has looked at core inflation more rigorously. I also think of course today, specifically the Arm IPO and the successful IPO, really kind of lifted animal spirits a bit.”
All major S&P 500 sectors finished positive, led to the upside by real estate. Health care was the worst performer, eking out a 0.25% gain. U.S. crude oil prices jumped nearly 2% and rose above $90 a barrel for the first time since November.
Stocks are headed for a winning week, with the Dow on pace for a nearly 1% gain and its second positive week in three. The S&P and Nasdaq have jumped about 1.1% and 1.2%, respectively, putting them on track for their third positive weeks in four.
Investors are looking ahead to another packed day for economic data. This includes a preliminary September Michigan sentiment reading, as well as import and export prices for August. Industrial and manufacturing production data for August are also due.