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

U.S. stock markets closed higher on Friday, with the S&P 500 ending the session just short of a record high, as investors' focus shifted toward the upcoming corporate earnings season. A strong public debut by South Korean memory-chip giant SK Hynix Inc. bolstered sentiment, particularly in the technology sector.

Friday's Market Performance

The major U.S. indices posted solid gains to end the week. The performance was led by the technology and consumer discretionary sectors.

• The S&P 500 climbed 0.42% to finish at 7,575.39 points, less than 0.5% below its record-high close from June 2.
• 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 registered a slight decline of 0.5%. Trading volume was relatively light, with 14.5 billion shares exchanged, below the 20-day average of 22.4 billion, according to the source report.

SK Hynix IPO Fuels AI Optimism

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A key driver for Friday's positive sentiment was the blockbuster U.S. listing of SK Hynix. The company's American Depositary Receipts (ADRs), which were priced at $149 each in an offering that raised over $26 billion, closed their first day of trading at $170, a gain of nearly 13%.

The successful debut reinvigorated the artificial intelligence trade, boosting confidence in semiconductor manufacturers. The PHLX chip index edged up 0.06%, marking its third consecutive day of gains. Among individual movers, Meta Platforms (META) shares jumped 6% to their highest level since April.

Focus Shifts to Q2 Earnings

With the trading week concluded, investors are now looking ahead to the start of 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 grew by 24% year-over-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 comments to Reuters. He added that the bank reports will provide 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 Federal Reserve officials next week for further clues on the path of monetary policy.