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

U.S. equity markets advanced on Friday, pushing the S&P 500 near a record high, as a blockbuster public offering from a major chipmaker renewed enthusiasm for artificial intelligence stocks. Investor focus is now shifting to the second-quarter corporate earnings season, which begins next week.

The S&P 500 climbed 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 gained 0.29%, ending the session at 26,281.61 points.

SK Hynix Debut Boosts Chip Sector

Sentiment was lifted by the strong Nasdaq debut of South Korea’s SK Hynix. The memory-chip manufacturer's American Depositary Receipts closed 13% above their offering price after the company raised over $26 billion in one of the year's most high-profile listings.

The successful IPO reinvigorated the AI trade, which has experienced some volatility recently amid concerns over high valuations. The PHLX Semiconductor Index edged up 0.06%, marking its third consecutive day of gains. Information technology was the S&P 500's best-performing sector, rising 1.65%.

Investors Brace for Earnings Season

With major U.S. banks set to report next week, investors are looking to the Q2 earnings season for justification of current market levels. Analysts expect S&P 500 earnings to have grown by 24% from the prior year, according to LSEG I/B/E/S data, with technology firms anticipated to be major contributors.

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"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 to Reuters. Sandven added that the bank reports will offer a crucial "read on the underlying economic strength and what consumers and businesses are doing."

Market Snapshot

For the week, the S&P 500 added 1.2% and the Nasdaq climbed 1.7%, while the Dow registered a slight loss of 0.5%. Trading volume was relatively light on Friday, with 14.5 billion shares exchanged, below the 20-session average of 22.4 billion.

Key market movers included:

• Meta Platforms (META): Jumped nearly 6% to its highest level since April.
• Moderna (MRNA): Tumbled almost 11%, marking its worst single-day performance in over a year.
• Delta Air Lines (DAL): Dropped 1.8% despite forecasting third-quarter profit above analyst expectations.

Investors are also anticipating next week's June inflation data and testimony from Federal Reserve Chair Kevin Warsh for further clues on the central bank's monetary policy direction.