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

U.S. equities closed higher on Friday, with the S&P 500 finishing just shy of a record, as a successful public offering for a major semiconductor firm bolstered technology shares. Investor attention is now turning to the second-quarter earnings season, which kicks off next week and is expected to show significant profit growth.

Friday's Market Performance

The S&P 500 gained 0.42% to close at 7,575.39 points, while the Dow Jones Industrial Average rose 0.29% to 52,637.01. The tech-heavy Nasdaq Composite also climbed 0.29% to end the session at 26,281.61.

For the week, the S&P 500 and Nasdaq posted gains of 1.2% and 1.7%, respectively, while the Dow registered a slight decline of 0.5%. Trading volume was relatively light, with 14.5 billion shares exchanged, below the 20-session average of 22.4 billion. Information Technology was the day's leading sector, rising 1.65%.

Chip Sector Boosted by Blockbuster IPO

Sentiment was lifted by the high-profile Nasdaq debut of South Korean memory-chip manufacturer SK Hynix. The company raised over $26 billion by selling American Depositary Receipts at $149 each. The stock closed its first day of trading at $170, a gain of 13% from its offering price.

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The successful listing renewed investor enthusiasm for the artificial intelligence trade, which has been a primary market driver this year. The PHLX Semiconductor Index edged up 0.06%, marking its third consecutive day of gains. Other notable tech movers included Meta Platforms, which jumped nearly 6%.

Investors Await Q2 Earnings Reports

With the trading week concluded, market participants are looking ahead to the start of second-quarter corporate earnings, with major U.S. banks slated to report next week. According to LSEG I/B/E/S data, analysts project that S&P 500 earnings surged 24% from the same period a year earlier, with technology firms expected to be major contributors.

"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 note. He added that the bank reports will provide a key reading on the strength of the economy. Investors will also be watching for June inflation data and testimony from Federal Reserve officials next week for further clues on the path of monetary policy.