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

U.S. stocks advanced on Friday, pushing the S&P 500 to just shy of a record high, as investor optimism was fueled by a strong Nasdaq debut for South Korean chipmaker SK Hynix. The focus now shifts to the second-quarter corporate earnings season, which begins next week with reports from major banks.

SK Hynix IPO Boosts AI Sentiment

The artificial intelligence trade regained momentum after SK Hynix, a major memory-chip manufacturer, saw its shares close 13% above their offering price. The company raised over $26 billion in a high-profile U.S. listing, with its American Depositary Receipts (ADRs) ending the session at $170 after being priced at $149 each.

The successful debut bolstered confidence in the semiconductor sector, which has been a primary beneficiary of the AI-driven market rally. The PHLX chip index edged up 0.06%, marking its third consecutive day of gains. The broader S&P 500 Information Technology sector was the day's top performer, rising 1.65%.

Investors Await Q2 Earnings Reports

Attention is now turning to corporate profitability as the second-quarter earnings season gets underway. According to data from LSEG I/B/E/S, analysts expect S&P 500 earnings to have surged by 24% from the same period a year earlier, with technology firms anticipated to be significant contributors to that growth.

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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 comments to Reuters. He noted that reports from large banks next week will offer a crucial read on underlying economic strength. Rising corporate profit estimates have helped moderate valuations, with the S&P 500's forward price-to-earnings multiple now at approximately 20, down from 21 in late May, according to the report.

Market Summary

All three major U.S. indices finished the day with gains:

• The S&P 500 rose 0.42% to 7,575.39 points.
• The Dow Jones Industrial Average climbed 0.29% to 52,637.01.
• The Nasdaq Composite gained 0.29% to 26,281.61.

For the week, the S&P 500 and Nasdaq added 1.2% and 1.7% respectively, while the Dow slipped 0.5%. Among notable movers, Meta Platforms jumped nearly 6%, while Moderna tumbled almost 11%. Trading volume was relatively light, with 14.5 billion shares exchanged, below the 20-session average of 22.4 billion, Reuters reported.