—— Cava IPO Shares Double on Debut; Micron Plans $2 Billion India Plant; Wall Street Faces Worst Job Market; BlackRock Files for Bitcoin ETF; Intel to Build $4.6 Billion Plant in Poland; Global Stocks May Correct 5% After Rally; $4.2 Trillion in Options Expire Today
1. Cava IPO Shares Double on Debut
On Thursday, U.S. Mediterranean fast-casual restaurant chain Cava officially debuted on the NYSE, raising $318 million through its IPO. Shares surged 99% to $43.78, highlighting strong market enthusiasm for new listings.
Cava’s offering price of $22 per share was already 10% above the high end of its expected range, yet it still nearly doubled on opening day.
According to Dealogic data, U.S. IPOs this year have raised a total of $8 billion, nearly matching 2022’s full-year total of $8.6 billion, though far below the $154 billion raised in 2021.
Given the recent exuberant stock market rally, Cava’s debut may have benefited from particularly favorable timing.
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2. Micron Plans $2 Billion India Plant
Sources revealed that U.S. semiconductor company Micron Technology is likely to announce plans to invest up to $2 billion in a semiconductor packaging plant in India during Prime Minister Narendra Modi’s upcoming U.S. visit.
Modi seeks to promote “Make in India” initiatives, while the U.S. is looking to reduce supply chain reliance on China. Modi’s trip aims to bridge technological divides and promote bilateral trade.
Separately, Micron announced a $600 million investment to expand its facilities in China, supporting local markets and creating jobs.
Modi has pledged to subsidize up to half the cost for companies building new plants.
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3. Wall Street Faces Worst Job Market
This week, Citigroup notified investors that it plans to cut 5,000 excess staff by the end of Q2, joining other major Wall Street banks in layoffs.
It is estimated that U.S. banks have cumulatively cut over 11,000 jobs so far this year. Max Kemnitzer, Managing Director at recruiter Michael Page, said the current job market is the toughest and most challenging since the financial crisis, with even securing interviews becoming difficult.
Goldman Sachs’ headcount shrank by 6.4% in Q1 to 45,400 employees. Other banks have not announced significant layoffs.
With capital markets activity still weak, banks are shedding excess staff hired during the boom years.
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4. BlackRock Files for Bitcoin ETF
On Thursday, BlackRock filed an application with the SEC to launch a Bitcoin ETF. If approved, it would be the first spot Bitcoin ETF available in the U.S.
Success would mark a significant boost for the battered cryptocurrency sector, which has faced major setbacks over the past year.
Earlier this month, the SEC sued Binance and Coinbase for alleged securities violations, and has previously rejected multiple Bitcoin ETF applications.
BlackRock’s move suggests growing institutional investor interest in cryptocurrencies despite recent market turmoil.
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5. Intel to Build $4.6 Billion Plant in Poland
U.S. chipmaker Intel announced plans to build a $4.6 billion semiconductor assembly and testing facility in Poland.
The company expects the plant to be completed by 2027 and to create over 2,000 new jobs.
Polish Prime Minister Mateusz Morawiecki expressed enthusiasm about strengthening Poland’s role in the global semiconductor supply chain. Intel already employs more than 4,000 people at its research centers in Poland.
Warsaw did not disclose specific subsidies, but Intel plans to seek additional incentives and continues discussions with Germany for further expansion.
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6. Global Stocks May Correct 5% After Rally
According to JPMorgan, recent stock market rallies have increased equity weights in retirement and sovereign wealth fund portfolios. If funds rebalance, it could trigger a 5% pullback in global equities.
JPMorgan strategist Nikolaos Panigirtzoglou estimates stock selling could reach $150 billion.
So far this quarter, equities have outperformed bonds significantly, forcing portfolio managers to trim stock holdings to restore balance.
The last similar rebalancing event occurred in Q4 2021, resulting in a 3%–5% pullback in stocks.
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7. $4.2 Trillion in Options Expire Today
According to Rocky Fishman, founder of derivative analytics firm Asym 500, approximately $4.2 trillion in stock and index-related options will expire today, 20% higher than the same time last year.
Typically, asset managers either extend the expiry dates or purchase new contracts, which can trigger heavy trading volumes and sharp price swings.
Matthew Tym, head of derivatives at Cantor Fitzgerald LP, said traders may extend call options, but overall market impact remains uncertain.
Currently, S&P 500 options expiring at year-end are pricing in a 7% market decline, reflecting investor caution.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.