S&P 500 Nears Record as SK Hynix IPO Lifts Wall Street Ahead of Earnings

U.S. stocks closed higher on Friday, with the S&P 500 finishing just shy of a record high, as a blockbuster market debut for South Korean chipmaker SK Hynix bolstered investor optimism ahead of the second-quarter earnings season.

SK Hynix Debut Boosts Tech Sentiment

The artificial intelligence trade returned to the spotlight following the high-profile U.S. listing of SK Hynix. The memory-chip manufacturer raised over $26 billion by selling American Depositary Receipts priced at $149 each.

The shares ended their first day of trading at $170, a 13% gain from the offering price. The successful debut provided a lift to the broader semiconductor sector, with the PHLX chip index gaining 0.06% for its third consecutive day of advances.

Focus Shifts to Q2 Earnings

Investors are now turning their attention to the second-quarter corporate earnings season, which begins next week with reports from major U.S. banks. According to LSEG I/B/E/S data, analysts have high expectations, forecasting a 24% year-over-year surge in S&P 500 earnings, led largely by technology companies.

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"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. Sandven added that bank results will provide insight into the underlying strength of the economy. Upcoming economic data, including the June inflation report, will also be closely watched for signals on the Federal Reserve's policy path.

Market Performance and Key Movers

All three major U.S. indices posted gains, though trading volume was relatively light at 14.5 billion shares, below the 20-day average of 22.4 billion.

• The S&P 500 climbed 0.42% to end at 7,575.39 points.
• The Nasdaq Composite gained 0.29% to 26,281.61 points.
• The Dow Jones Industrial Average rose 0.29% to 52,637.01 points.

For the week, the S&P 500 and Nasdaq added 1.2% and 1.7% respectively, while the Dow declined 0.5%. Information technology was the day's top-performing sector, rising 1.65%. Among individual stocks, Meta Platforms jumped 6%, while Moderna tumbled nearly 11% in its worst session in over a year.