Posted: 09-14-23 02:28:29 pm
The S&P 500 (^GSPC) gained 0.7%, while the Dow Jones Industrial Average (^DJI) ticked up 0.9%, or about 300 points. The Nasdaq Composite (^IXIC) added around 0.8%, as British chipmaker Arm (ARM) popped more than 12% in the moments after it started trading on the exchange.
Thursday’s reading on retail sales for the same month came in stronger than they were in July, underscoring how the US consumer has remained resilient despite rising interest rates. Sales grew 0.6% on the month, compared with 0.1% expected, picking up steam as people shelled out more for gas.
The Producer Price Index increased 0.7% in August, up from 0.4% the previous month, data out Thursday showed — a sign that inflation remains stubbornly persistent despite the Fed’s efforts to cool pressures. But at the same time, “core” wholesale inflation rose 2.2%, down from July’s print of 2.4%.
Arm’s debut on the Nasdaq on Thursday comes after the SoftBank-backed chip designer priced its blockbuster IPO at the top of the range at $51 per share for a $54.5 billion valuation. The stock quickly rose above $57 per share in the first 15 minutes of trading.
Elsewhere, the European Central Bank hiked its interest rates for the 10th time in a row, to 4% — the highest level since the euro was launched in 1999. ECB policymakers also upped their inflation forecast, which they expect to remain too high for too long.