S&P 500 Nears Record High as SK Hynix Debut Boosts Tech Sentiment

U.S. major stock indexes finished higher on Friday, with the S&P 500 ending the session just short of a record high. Investor optimism was fueled by a blockbuster U.S. listing for South Korean chipmaker SK Hynix, renewing enthusiasm for the artificial intelligence trade as the market's focus shifts to the upcoming quarterly earnings season.

Friday's Market Performance

The S&P 500 climbed 0.42% to close at 7,575.39 points, leaving it just 0.45% below its record high set on June 2. The tech-heavy 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 posted gains of 1.2% and 1.7%, respectively, while the Dow registered a slight weekly decline of 0.5%. Trading volume was relatively light, with 14.5 billion shares exchanged, below the 20-session average of 22.4 billion, according to the source report.

SK Hynix Debut Ignites Tech Sector

A major catalyst for Friday's rally was the successful Nasdaq debut of SK Hynix. The memory-chip manufacturer raised over $26 billion by selling American Depositary Receipts (ADRs) and saw its shares close at $170, a 13% premium to its $149 offer price. The strong performance provided a significant boost to sentiment across the semiconductor industry, with the PHLX chip index gaining 0.06%.

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The information technology sector was the S&P 500's top performer, rising 1.65%, while Meta Platforms (META) shares jumped nearly 6%. The successful listing underscored continued investor appetite for companies positioned to benefit from the growth of artificial intelligence.

Focus Shifts to Earnings Season

Investors are now looking ahead to the second-quarter earnings season, which begins next week with reports from major U.S. banks. Analysts surveyed by LSEG I/B/E/S expect S&P 500 earnings to have surged 24% year-over-year, largely driven by growth in the technology sector.

"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 comments to Reuters. He added that bank results will provide a crucial "read on the underlying economic strength." Investors will also be watching next week's June inflation data and testimony from Federal Reserve officials for further clues on the path of monetary policy.