S&P 500 Nears Record High as SK Hynix Debut, Earnings Hopes Boost Wall Street

U.S. stocks finished the week on a positive note, with the S&P 500 closing just shy of a record high as investors drew confidence from a blockbuster market debut by chipmaker SK Hynix and turned their focus to the upcoming corporate earnings season.

Friday's Market Performance

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

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

SK Hynix Debut Bolsters Tech Sentiment

Market sentiment was significantly boosted by the successful U.S. listing of South Korean memory-chip manufacturer SK Hynix. After raising over $26 billion, the company's American Depositary Receipts began trading on the Nasdaq and ended the day at $170, a 13% premium to their $149 offering price.

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The strong debut renewed optimism in the artificial intelligence and semiconductor sectors, which have experienced increased volatility recently amid concerns over high valuations. The PHLX semiconductor index gained 0.06% for its third consecutive day of advances.

Focus Shifts to Earnings Season

With the trading week concluded, investor attention is now squarely on the second-quarter earnings season, which begins next week with reports from major U.S. banks. Analysts surveyed by LSEG I/B/E/S have high expectations, forecasting that S&P 500 earnings will surge 24% from the prior-year period.

"This is a high-bar quarter with a narrow margin of error," Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told 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 upcoming June inflation data and testimony from Fed Chair Kevin Warsh for signals on future monetary policy.