Stocks rise after ARM IPO as investors ignore inflation data By Investing.com

Investing.com – US stocks rose after stronger-than-expected retail sales pointed to a resilient economy even as inflation data appeared hotter than expected.

At 12:52 EST (16:52 GMT), the Dow Jones Industrial Average was up 345 points, or 1%, while the S&P 500 was up 0.8% and the Nasdaq Composite was up 0.8%.

Wall Street’s three major indexes lost their previous momentum on Wednesday, as investors tried to digest the August consumer price report.

More inflation data to digest /h2

The data showed that US consumer prices rose at the most pace in 14 months in August as the cost of gasoline rose, but the annual rise in core inflation was the smallest in nearly two years.

The US central bank is still widely expected to keep borrowing costs in a range of 5.25% to 5.50% at its next meeting later this month, according to Investing.com’s Fed Rate Watch tool.

But the rise in the headline rate contrasts with previous inflation readings that were cooler than expected, creating uncertainty over whether Fed officials will choose to raise interest rates again in November or December.

More inflation data was released today. The Producer Price Index for August rose by 1.6% on an annual basis, exceeding expectations of 1.2%, and also rose by 0.7% compared to July, versus expectations that indicated an increase of 0.4%.

Additionally, retail sales rose 0.6%, versus estimates of 0.2% from the previous month, while the weekly number of Americans seeking unemployment benefits reached 220,000 last week, below expectations.

arm To start trading after the IPO/h2

Arm Holdings (NASDAQ:ARM) shares rose 17.5% in their New York trading debut. The British chip designer priced its initial public offering at $51 apiece, touching the high end of its specified range and securing a valuation of $54.5 billion.

The list – the largest since the electric truck maker Rivian Cars (NASDAQ:RIVN) valued at about $12 billion for the first time in 2021 – driven by strong demand that led to the stock being more than 12 times oversubscribed.

In terms of quarterly earnings, whether home builder Lennar (NYSE:LEN) and computer software company Adobe Systems (NASDAQ:ADBE) are scheduled to release results after the market close on Thursday.

AMC Entertainment Holdings Inc (NYSE:AMC) shares rose 0.7% after the movie theater operator completed a 40 million share sale, raising $325 million.

h2 Crude oil gains as market remains tight/h2

Oil prices rose on Thursday as supplies are expected to remain tight this year, while confidence about the demand outlook remains strong even as US crude inventories rise.

The International Energy Agency largely stuck to its estimates of demand growth this year and next in its monthly report released on Wednesday, joining the Organization of the Petroleum Exporting Countries in expecting further tightening in oil markets this year.

This helped traders beat US oil inventories, which rose by four million barrels last week, exceeding expectations for a decline of about 2 million barrels.

(Peter Nourse and Oliver Gray contributed to this article.)