Stocks opened higher Thursday following the latest inflation data and built on those gains as the session wore on. Investor sentiment also got a lift from Arm Holdings' (ARM) initial public offering (IPO), with the chipmaker sizzling on its first day of trading.
This morning's producer price index (PPI), which measures what businesses are charging suppliers for goods, painted a similar picture to yesterday's Consumer Price Index (CPI). Specifically, the Bureau of Labor Statistics said earlier the August PPI rose 0.7% month-over-month, faster than July's 0.4% increase, as gas prices spiked. Core PPI, which excludes volatile food and energy prices, was unchanged from the month prior, but rose at a quicker annual pace (3.0% vs July's 2.9%).
Also on the economic calendar was initial jobless claims, which edged up by a modest 3,000 last week to 220,000. Additionally, retail sales increased for a fifth straight month in August due to higher sales at gas stations.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
None of these data points does much to move the needle on expectations the Federal Reserve will pause rate hikes at next week's meeting. Indeed, futures traders are pricing in a 97% chance the central bank will keep interest rates unchanged at next week's meeting, according to CME Group.
Arm IPO comes in hot
The day's headlines did not solely revolve around the economy and interest rates, however. Another major news story was Arm's blockbuster IPO. The Softbank-owned chipmaker that was previously a Nvidia (NVDA, +0.2%) takeover target last night priced its IPO at $51 per share – the high end of its range – and opened today at $56.10. Shares reached $66.28 in intraday trading before settling at $63.59.
"The ARM IPO is the most hyped listing we've had in the markets for a while, with rising rates and volatility in equity markets dampening new listings over the past two years," says Kyle Rodda, senior market analyst at brokerage firm at Capital.com.
But not everyone is as excited as investors about the Arm IPO. David Trainer, CEO New Constructs, a research firm powered by artificial intelligence, says this offering creates "a valuation that is completely disconnected from the company’s fundamentals." As such, there's likely "very limited upside ahead" for ARM.
Buffett sells HPQ shares
Elsewhere, HP (HPQ) slumped 1.8% after a regulatory filing revealed Warren Buffett's Berkshire Hathaway (BRK.B, +0.5%) sold 5.5 million shares of the PC and printer maker. Buffett & Co. initiated a stake in HPQ in the first quarter of 2022 and owned 120.9 million shares at the end of Q2 2023, representing 1.1% of the Berkshire Hathaway equity portfolio.
As for the major indexes, the Nasdaq Composite rose 0.8% to 13,926, the S&P 500 gained 0.8% to 4,505, and the Dow Jones Industrial Average added 1.0% to 34,907.
Related content
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market Today
The major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
