Instacart stock subdued as debut enthusiasm loses steam

Instacart’s stock closed nearly 11% lower on Wednesday, as the grocery delivery app joined other new stock market entrants in failing to keep up with strong gains on debut.

Investors were hoping that a recent wave of new listings would reignite the IPO market after a near 18-month dry spell, but stocks including chip designer Arm and RayzeBio have slipped from their debut highs amid persistent worries about high interest rates and inflation.

The market seems unsure of whether the economic conditions can continue to support the elevated valuations of those IPOs, said Mark Luschini, chief investment strategist at Janney Montgomery Scott.