Wall Street was pointing toward a mixed start Friday morning, with investors keeping a close eye on the highly anticipated U.S. stock market debut of South Korean memory chip company SK Hynix, even as renewed tensions in the Middle East stirred fresh concerns about inflation.
Major U.S. indexes had closed higher the day before, driven largely by gains among chipmakers. Heading into Friday, both the S&P 500 and the Nasdaq were on pace to finish the week in positive territory, with artificial intelligence stocks back in the spotlight ahead of SK Hynix’s high-profile listing.
The offering is expected to rank as the largest share sale in the world since SpaceX’s record-breaking IPO last month. SK Hynix raised approximately $26.5 billion on Thursday by selling American Depositary Receipts at $149 each.
Kathleen Brooks, research director at XTB, offered an optimistic take on the listing. “We’ve heard that it’s oversubscribed and people want to own the stock. So I don’t think it’s going to be a disaster or cause any negative volatility. And in fact, if anything, once it starts trading, it could lift the entire chip sector as we move into the weekend,” she said.
Chipmakers have been among the top performers this year, riding a wave of enthusiasm around artificial intelligence and expectations of heavy investment in data centers and AI infrastructure. However, worries about high valuations and profit-taking have introduced some turbulence into the sector recently.
Semiconductor stocks faced selling pressure in premarket trading. Intel fell roughly 2.6%, while memory chip maker Micron Technology slipped 1.3% after surging 4.5% the previous session.
As of 8:28 a.m. Eastern Time, Dow E-minis were up 104 points, or 0.2%. S&P 500 E-minis dipped slightly, down just 1 point, or 0.01%, and Nasdaq 100 E-minis fell 84.25 points, or 0.28%.
Geopolitical tensions also weighed on markets after Iranian armed forces launched attacks on U.S. military infrastructure in Gulf states on Thursday, following U.S. strikes on Iran’s southern coastal and eastern provinces. The escalation renewed fears about the potential inflationary impact of the ongoing conflict.
New York Federal Reserve President John Williams said Thursday that he does not anticipate Middle East hostilities will cause a lasting increase in energy prices through the remainder of the year.
Investors are also looking ahead to June inflation figures due next week, which could provide clues about the Federal Reserve’s next policy moves. Fed Chair Kevin Warsh is also scheduled to testify before the House Committee on Financial Services.
Markets are currently pricing in at least one 25-basis-point interest rate increase before the end of 2026, according to LSEG data.
Delta Air Lines edged down 0.5% in volatile trading, despite issuing a third-quarter profit forecast that exceeded analyst expectations.
Cryptocurrency-linked stocks moved higher alongside gains in bitcoin. Strategy climbed 5.4%, while Coinbase and Riot Platforms rose 4.9% and 2.2%, respectively.
Earnings season is set to ramp up next week. Analysts tracking LSEG data expect S&P 500 earnings to climb 24% compared to the same period a year ago, with technology companies expected to lead much of that growth.
