Stock market today: Dow rallied after Arm IPO popped; eyes turn to Fed meeting
Investing.com — U.S. stocks rallied on Thursday after stronger than expected retail sales pointed to a resilient economy even as inflation data came in hotter than expected.
At 16:01 ET (20:01 GMT), the Dow Jones Industrial Average was up 331 points or 0.9% while the S&P 500 was up 0.8% and the NASDAQ Composite rose 0.8%.
The three major Wall Street indices lost their earlier momentum on Wednesday, as investors tried to digest the August consumer prices report.
The data showed that U.S. consumer prices increased by the most in 14 months in August as the cost of gasoline rose, but the annual rise in underlying inflation was the smallest in nearly two years.
The U.S. central bank is still widely projected to keep borrowing costs at a range of 5.25% to 5.50% at its upcoming meeting later this month, according to Investing.com's Fed Rate Monitor Tool.
But the rise in the headline rate contradicted earlier inflation readings which had come in cooler than expected, creating uncertainty over whether Fed officials will opt to raise rates once more in either November or December.
More inflation data came out today. The producer price index for August rose 1.6% on an annualized basis, beating expectations for 1.2%, and it rose 0.7% from July versus expectations for a gain of 0.4%.
Additionally, retail sales rose 0.6%, versus estimates for 0.2% from the prior month, while the weekly number of Americans seeking unemployment benefits was 220,000 last week, lower than expectations.
Arm Holdings (NASDAQ:ARM) shares rose almost 25% in their trading debut in New York. The British chip designer priced its initial public offering at $51 apiece, touching the top end of its indicated range and securing a valuation of $54.5 billion.
The
Read more on investing.com
