The stock markets in the United States experienced a slight dip as investors awaited the outcome of the Federal Reserve’s meeting. Furthermore, U.S. Treasury yields rose, indicating concerns about future interest rate hikes. In Europe, the Stoxx 600 index decreased by 0.04%, while major stock exchanges in the region had mixed results. Additionally, euro zone inflation for August was revised down slightly from 5.3% to 5.2% year over year.
Meanwhile, Instacart, the popular grocery delivery service, had a successful debut on the stock market. The company’s shares rose by 12.3% on its first day of trading, closing at $33.70. This surge in price gave Instacart a valuation of over $11 billion. Initially, the stock jumped 40%, reaching $42, but later experienced a decline as some investors sold off their shares to secure their early gains. Overall, Instacart’s initial public offering generated over $420 million in cash for the company.
Another notable development was the release of Huawei’s Mate 60 Pro smartphone. This release surprised many because Huawei has been on the U.S. trade blacklist, which restricts the company from purchasing American technology. The Mate 60 Pro comes with an advanced semiconductor that was previously thought to be beyond Huawei’s reach. Consequently, this move has sent shockwaves through the political and tech world, with some analysts considering Huawei as Apple’s biggest competitor in China.
In a different context, Canadian Prime Minister Justin Trudeau made remarks suggesting that the murder of Canadian Sikh community leader Hardeep Singh Nijjar in British Columbia might be linked to Indian government agents. In response, Canada expelled a top Indian diplomat, and India retaliated by expelling a Canadian diplomat. The Indian government dismissed these allegations as “absurd and motivated.”
Additionally, recent initial public offerings (IPOs) by firms such as Arm, Instacart, and Kaviyo have generated excitement among investors. The IPO market experienced a slump last year but is now showing signs of a revival. However, some companies are still hesitant to go public due to lower valuations. Yet, this low valuation is precisely what investors are seeking in today’s market.
In conclusion, the stock markets were on a downbeat note ahead of the Federal Reserve policy decision. Instacart’s successful IPO was met with some caution, as its initial rally quickly faded. Arm’s stock also experienced a decline. The U.S. bond market saw rising yields, indicating expectations of potential interest rate hikes. Oil prices slightly dipped after a three-day winning streak, and analysts believe that the rise in oil prices will not trigger immediate interest rate hikes by central banks.
– CNBC Daily Open newsletter