Alibaba Group Holding Ltd (BABA) IPO Behind S&P 500 Surge: Scarlet Fu


Alibaba Group Holding Ltd (NYSE:BABA)’s staggering IPO in the US has certainly rattled the market. In the program “Single Best Chart,” Bloomberg’s Scarlet Fu discussed the effects of Alibaba Group Holding Ltd (NYSE:BABA)’s IPO on the US markets. On September 19th, S&P 500 touched its all-time high records. Just minutes before the start of September 19, the market was going on the normal figures but as soon as September 19 trading started, the indexes surged. Alibaba Group Holding Ltd (NYSE:BABA)’s first trading day was exactly the same date on which all-time highs were recorded.

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“[…] So far this year S&P 500 has gained as much as 9.5% on an inter day basis,” said Fu.

She said that this all-time high figure was recorded in September this year. After the first trading day of Alibaba Group Holding Ltd (NYSE:BABA), the S&P 500 index started getting on a low side. Fu discussed this trend with Senior Funds Manager and Analyst at White Funds Management Pty Ltd, Atul Lele. Lele thinks that it is going to be a very difficult and problematic market environment in the next three months. The primary reason behind the dilution of market growth is the lack of liquidity growth and bad economic conditions in the world. Liquidity growth can be easily regarded as the single most important cause that is detrimental to the market issues, Lele thinks.

Short term interest rates are on the rise and the yields are becoming less. This, Lele thinks, is a red indicator for the market future. Alibaba Group Holding Ltd (NYSE:BABA)’s IPO has nothing to do with these market problems. It is the general trend that is defined by the global economic problems. Lele thinks that getting listed publically must not be effected by this interest rate trends. Companies must think the reasons behind getting listed publically.

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