The S & P 500 and the Nasdaq finished an up-and-down week slightly in the red after Friday’s steep slide on higher bond yields and oil prices wiped out Thursday’s strong rally inspired by the big IPO of Arm (ARM). The Dow Jones Industrial Average , meanwhile, managed to post a very slight weekly gain. The Softbank-owned chip designer’s return to the public markets — the largest initial public offering since 2021 — was the highlight of the week. The stock fell about 4% on Friday after soaring nearly 25% on Thursday. The success of the Arm deal sent the biggest signal yet that the IPO market may be coming out of its two-year hibernation — which, in turn, is seen as bullish for banks, such as Morgan Stanley (MS), which have been starved of new offerings. While Morgan Stanley and fellow Club name Wells Fargo (WFC) were dragged down in the broader market sell-off Friday, they both had strong weeks. The Arm-boost to the overall stock market faded Friday as big questions loomed for investors ahead such as the Federal Reserve’s next move on interest rates, the economic impact of oil over $91 per barrel, and the targeted United Auto Workers strikes at all three U.S. automakers. Those are the three things that we’ll be focusing on in the week ahead. 1. The Fed holds its two-day September meeting starting Tuesday. A quarterly summary of Fed officials’ economic projections is out with the policy statement Wednesday afternoon, followed by Fed Chairman Jerome Powell’s news conference. No interest rate increase is expected this time around, but there are still roughly 30% market odds on a rate hike before the end of the year, according to the CME’s FedWatch tool , especially after this week’s inflation data came in a bit hot. The August consumer price index, out this past Wednesday, registered its biggest monthly increase this year , boosted by higher energy prices. However, the August rise in core CPI, which excludes the energy and food components, exceeded…
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