S&P 500 Nears Record High as SK Hynix Debut Boosts AI Stocks

U.S. stocks advanced on Friday, with the S&P 500 finishing just short of a record high, as a blockbuster public offering from South Korean chipmaker SK Hynix renewed optimism in the artificial intelligence sector and investors shifted their focus to the upcoming corporate earnings season.

Friday's Market Close

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

Eight of the 11 S&P 500 sectors finished higher, led by a 1.65% gain in Information Technology and a 1.46% rise in Consumer Discretionary. Trading volume was relatively light, with 14.5 billion shares exchanged, below the 20-day average of 22.4 billion, according to the source.

SK Hynix Listing Fuels Chip Sector

The AI trade returned to the spotlight following the high-profile U.S. debut of SK Hynix. The memory-chip manufacturer raised over $26 billion through the sale of American Depositary Receipts priced at $149 each.

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The stock ended its first day of trading at $170, a 13% premium to its offering price, fueling broader optimism for semiconductor companies. The PHLX chip index gained a modest 0.06%, marking its third consecutive day of gains.

Earnings Season in Focus

Investors are now looking ahead to the second-quarter earnings season, which begins next week with reports from major U.S. banks. According to LSEG I/B/E/S data, analysts project that S&P 500 earnings will surge by 24% compared to the same period last year, with technology firms expected 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." Investors will also be watching for June inflation data and testimony from Fed Chair Kevin Warsh next week for further clues on monetary policy.