Roblox Surges 55% in Stock Market Debut

Dow Jones hits new record high
By Newser Editors and Wire Services
Posted Mar 10, 2021 3:56 PM CST
Roblox Surges 55% in Stock Market Debut
In this photo provided by the New York Stock Exchange, trader Phyllis Arena Woods works on the trading floor, Wednesday March 10, 2021.   (Nicole Pereira/New York Stock Exchange via AP)

The stock market's big success story Wednesday was videogame maker Roblox, which surged 55% on its debut. The company, which enables users to play online games created by others on the platform, was valued at around $4 billion just a year ago, but the leap from a reference price of $45 to $69.50 values it at more than $45 billion, the New York Times reports. Other stocks closed mostly higher on Wall Street as a benign reading on inflation led to long-term interest rates easing lower in the bond market, reports the AP. The S&P 500 rose 23.37 points, or 0.6%, to 3,898.81. The Dow Jones Industrial Average rose 464.28 points, or 1.5%, to 32,297.02, a new record. A pullback in Big Tech stocks pulled the Nasdaq down 4.99 points, or less than 0.1%, to 13,068.83.

US consumer prices increased 0.4% in February, the biggest increase in six months. However, a closely watched measure called core inflation, which excludes food and energy prices, posted a much smaller 0.1% gain. The rise for core inflation was also below economists' expectations. The latest report on inflation, along with the Federal Reserve promising to keep interest rates low, has helped ease concerns over the recent rise in bond yields, says Katie Nixon, chief investment officer at Northern Trust Wealth Management. "It’s clear that investors expect there to be a bump in inflation in the short term, but the long-term view is pretty benign," Nixon says. "Investors are coming around to the view that it's not a bad backdrop for risk assets."

(More stock market stories.)

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