Figma’s stock made a stunning Wall Street debut, soaring 250% on its first day of trading and closing at $115.50—more than triple its IPO price of $33. The excitement didn’t stop there, as Figma shares added another 5% the following day, even while the broader market slipped due to disappointing economic data.

This dramatic debut signals that investor appetite for technology and growth stocks is alive and well, despite challenges such as a slowing economy, elevated tech valuations, and the introduction of new tariffs. Figma, a leading provider of design software, has clearly captured the market’s imagination, standing out as a high-growth platform with strong potential for future expansion.

The company’s impressive IPO comes amid a broader resurgence in the technology sector. Over the past three months, the tech-heavy Morningstar US Technology Index has climbed around 23%, sharply outpacing the broader US Market Index, which is up 14%. This rebound follows a difficult start to the year, when uncertainty over international trade and geopolitical tensions prompted many investors to move away from riskier assets like tech stocks.

Analysts see Figma’s explosive listing as a promising sign for the IPO market overall, which has had a muted first half of the year. There is renewed optimism that unique, fast-growing technology companies can still generate significant demand, even in less favorable economic conditions.

In summary, Figma’s blockbuster IPO and subsequent gains highlight both the resilience of investor risk appetite in tech and potential momentum for a revival in public offerings. As the sector continues to rebound, all eyes are on how newly public companies like Figma will perform in the months ahead.