A window for Initial Public Offerings or IPOs has opened as Reddit, Astera, Galderma staged multi billion USD IPOs in the US and Switzerland.
IPOs are usually good for the stock market rallies because by selling shares in IPOs venture capital funds and asset managers get liquidity in the form of electronic money, which gets freed and invested in other startups and both private and public larger companies. Since its is invested in many in number companies the money freed form the IPOs is actually multiplied. And since the money also goes in other public stocks this fans stocks prices higher.
In addition the news coverage of initial public offerings brings in even more investors' money flows. All asset managers, hedge funds, pension funds and individual investors have fee cash to invest. A flurry of IPO new in both mainstream and financial media makes these investors invest the free money.
Thus new IPOs are attracting new money to the stock market and supporting stock market rallies.
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