Cerebras Shares Surge in Market Debut, Close Lower After Volatile First Day
AI chip designer Cerebras opened at $385 per share, $200 above its IPO price of $185, before falling to a low of $300 and settling at $311.07.
Despite the decline from the opening price, the first day of trading was considered a success.
Market Impact
- Nvidia shares rose $9.91 (4.39%) to a record close of $235.44.
- The S&P 500 increased by 0.77% and the NASDAQ by 0.88%, both closing at record highs.
- The Dow Jones Industrial Average rose above 50,000 points, closing at 50,068.02, near its all-time closing high of 50,188.14.
Debt Market
US Treasury yields were mixed:
- 2-year yield: 4.017% (+2.7 bps)
- 5-year yield: 4.150% (+2.1 bps)
- 10-year yield: 4.482% (+0.4 bps)
- 30-year yield: 5.028% (-1.6 bps)
Economic Data
- Import prices rose 1.9% and export prices rose 3.3%.
- Retail sales increased 0.5%, with the control group also up 0.5%. However, retail sales are nominal and not adjusted for inflation.
- Weekly jobless claims were 211,000, above the expected 205,000, but remain historically low.
Currency Markets
The US dollar strengthened against major currencies:
- GBP (-0.94%), AUD (-0.56%), NZD (-0.44%), EUR (-0.38%), JPY (-0.35%), CHF (-0.28%), and CAD (-0.14%).
The British pound fell amid political uncertainty, with UK Health Secretary Wes Streeting resigning and fueling speculation about a challenge to Prime Minister Starmer.
Andy Burnham confirmed plans to return to Parliament. Political betting markets reportedly show elevated odds of Starmer leaving office by summer.
UK monthly GDP rose 0.3%, above expectations of -0.1%.