This month's three big IPOs gave up their early gains this week, denting market confidence

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The underperformance of these recent IPOs could be a sign that appetite for risk is still in recovery mode.

Three highly anticipated initial public offerings that came to market this past week raised investor hopes that a nearly two-year-long drought in IPOs might finally be coming to an end. But the underperformance of all three stocks — which by Thursday were all trading within a couple of percent on either side of their offering prices — could be a sign that market sentiment isn't ready to embrace a lot more risk just yet.

mountain 2023-09-19 Instacart shares since market debut "You're in an environment where a lot of investors are looking for more stability," Lerner said. "When you have risk-on, people are willing to take to go ahead on these companies that have higher risk-return profiles, but in the short term, the market just has a bit of a lack of confidence based on all the crosscurrents.

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