S&P 500 Nears Record as SK Hynix Debut Boosts Tech Ahead of Earnings

U.S. equity markets closed higher on Friday, pushing the S&P 500 near a record, as a blockbuster public offering from a major chipmaker reignited enthusiasm for artificial intelligence stocks. Investor focus is now shifting to the upcoming corporate earnings season, which kicks off next week.

Market Performance

The S&P 500 climbed 0.42% to finish the session at 7,575.39 points, leaving it just 0.45% below its record high close set on June 2. The Nasdaq Composite gained 0.29% to 26,281.61, and the Dow Jones Industrial Average rose 0.29% to 52,637.01.

For the week, the S&P 500 and Nasdaq added 1.2% and 1.7%, respectively, while the Dow registered a weekly loss of 0.5%. Trading volume was relatively light, with 14.5 billion shares exchanged, below the 20-session average of 22.4 billion, as reported by Reuters.

Key stock movements included:

• Meta Platforms (META) jumped nearly 6% to its highest level since April.
• SK Hynix (SKHY) ended its first day of trading at $170, up 13% from its offering price.
• Moderna (MRNA) tumbled almost 11% in its worst session in over a year.

SK Hynix Debut Fuels AI Rally

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Sentiment in the technology sector was lifted by the high-profile U.S. listing of South Korea’s SK Hynix. The memory-chip manufacturer raised over $26 billion by selling American Depositary Receipts priced at $149 each, marking a significant vote of confidence in the AI-driven semiconductor industry. The PHLX chip index edged up 0.06%, its third consecutive daily gain.

The successful debut helped renew optimism in the AI trade, which has been a primary driver of market gains this year but has recently seen increased volatility amid valuation concerns.

Focus Shifts to Earnings

Investors are now looking ahead to the second-quarter earnings season, with major U.S. banks slated to report next week. According to LSEG I/B/E/S data, analysts expect S&P 500 earnings to have surged 24% from the same period a year earlier, with technology firms anticipated to be major contributors to that growth.

"This is a high-bar quarter with a narrow margin of error," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, in a comment to Reuters. "The banks will give us a good read on the underlying economic strength and what consumers and businesses are doing." Key economic data on June inflation and testimony from Fed Chair Kevin Warsh are also scheduled for the upcoming week.