The stock market has been resolute, and even some uncertainty about the future course of monetary policy from the Federal Reserve wasn't enough to stop the markets' upward momentum on Thursday.

Gains of more than 1% for the Nasdaq Composite (^IXIC 1.22%), S&P 500 (^GSPC 0.55%), and Dow Jones Industrial Average (^DJI -0.05%) were broad-based, rebutting some arguments that the stock market's recent rally hasn't included enough stocks:

Index

Daily Percentage Change

Daily Point Change

Dow

+1.26%

+429

S&P 500

+1.22%

+53

Nasdaq

+1.15%

+156

Data source: Yahoo! Finance.

One thing that investors haven't seen too much of lately are initial public offerings (IPOs), but the debut of restaurant stock Cava Group (NYSE: CAVA) went exceptionally well. Meanwhile, AI stocks stayed in the headlines, as Adobe (ADBE -0.92%) made another push higher after releasing its latest financial results.

Investors are hungry for Cava

Cava Group finished its first day of trading at $43 per share. That was 95% above the $22-per-share offering price for its initial public offering, and the stock stayed within a pretty narrow range between $42 and $48 per share during its first day of trading.

Several people serve themselves at a table with multiple dishes of food on it.

Image source: Getty Images.

Cava runs a chain of fast-casual Mediterranean restaurants. Organic growth and acquisitions have helped to bolster the size of its operations in recent years. Although the company isn't profitable and doesn't generate positive cash flow, Cava has drawn comparisons to other fast-casual chains like Chipotle Mexican Grill (CMG 0.83%).

There are still many questions about the prospects for Cava's business in the long run. Fast-casual restaurant concepts are blossoming as patrons continue to venture out more, with concerns about the COVID-19 pandemic fading into the background. It's a different world than the one Chipotle helped build, and it'll be harder for Cava to stand out from its peers.

IPO stocks are notorious for being volatile just after they go public. But in an environment in which there haven't been many newly public companies, it'll be interesting to see whether Cava pulls back or keeps running higher in the days and weeks ahead.

Adobe stays on the rise

Elsewhere, Adobe shares rose more than 5% in after-hours trading, following a 2% gain in the regular session. The specialist in creative software reported financial results for the fiscal second quarter (ended June 2), continuing to tout its prospects in artificial intelligence (AI).

Adobe reported modest gains of 10% year over year in its quarterly revenue. Adjusted net income came in at $1.79 billion, which was up 13% from year-ago levels and worked out to earnings of $3.91 per share. Sales gains were consistent across the business, with digital media, creative software, and document cloud revenue all gaining between 9% and 11% year over year.

Investors were also pleased with Adobe's updated financial estimates. For the full 2023 fiscal year, the company now anticipates revenue of between $19.25 billion and $19.35 billion, with nearly three-quarters of that total coming from the digital media segment. Earnings should finish the year between $15.65 and $15.75 per share on an adjusted basis, which would represent significant growth.

Adobe believes that its products should help lead what CEO Shantanu Narayen called a "new era of generative AI." That's certainly the hope of its investors, who are more optimistic than ever about what artificial intelligence could mean for Adobe's business. And the recent rise in share prices reflects a rising tide of enthusiasm about AI overall.