The Renaissance IPO ETF tumbled 7% Thursday, swept up in the carnage in broader markets as major indexes more than wiped out the gains made Wednesday in a relief rally following a widely expected interest-rate hike.
The ETF IPO,
Fed chair Jerome Powell on Wednesday said the central bank was not likely to hike its benchmark interest rate by 75 basis points at its next meeting, a comment that immediately sent stocks higher and the dollar DXY,
But Powell was hardly dovish, all but promising consecutive 50 basis rate hikes, and saying it would take a cooling in red-hot inflation or a deteriorating jobs market for the Fed to slow down the pace of rate increases, and even then only by 25 basis point increments.
Yields rose again Thursday with the 10-year note above 3.06% or its highest level since 2018. That sent stocks sharply lower with the Dow Jones Industrial Average DJIA,
The IPO market was expecting eyecare company Bausch + Lomb BLCO,
With 350,000 shares expected to be outstanding after the offering, the company would be valued at $8.4 billion at the top end of the price range.
The company is being spun out of healthcare company Bausch Health Inc. BHC,