US stocks jump on consumer strength while Arm’s bullish debut lifts hopes for IPO market

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US stocks jump on consumer strength while Arm’s bullish debut lifts hopes for IPO market
Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2023 in New York City.Michael M. Santiago/Getty Images
  • US stocks rose Thursday, with the Dow Jones notching its biggest gain in a month.
  • Investors cheered more signs of consumer strength and Arm's blowout IPO.
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US stocks rose on Thursday, with the Dow Jones surging 374 points, its largest gain in a month.

Strong sentiment was driven by a better-than-expected retail sales report. August retail sales saw a 0.6% increase, above expectations of a 0.1% climb. When excluding autos, sales rose 0.6%, against a 0.4% outlook.

Investors were also encouraged by the blowout debut of chip designer Arm, which wrapped the biggest IPO since 2021, securing a valuation of $54 billion. The shares closed 24% higher, ending the day at $63.59, well above the IPO price of $51.

Producer price index data for August was also released on Thursday. It showed prices grew by 0.7% in August, topping estimates of a 0.4% rise. The Federal Reserve will meet next week to decide its next monetary policy move, with markets pricing in strong odds the central banks holds steady before potentially raising interest rates again in November.

Here's where US indexes stood at the 4:00 p.m. closing bell on Thursday:

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Here's what else is going on today:

In commodities, bonds, and crypto:

  • West Texas Intermediate crude oil rose 2.14% to $90.41 a barrel. Brent, the international benchmark, gained 2.19% at $93.90 a barrel.
  • Gold dipped 0.8% t0 $1,930.90 per ounce.
  • The yield on the 10-year Treasury bond climbed 4.2 basis points to 4.29%.
  • Bitcoin rose 1.65% to $26,661.
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