Dow rises as Wall Street awaits SK Hynix debut, tracks Iran tensions
Wall Street opened in green on Friday as investors awaited the Nasdaq debut of South Korean memory chipmaker SK Hynix while continuing to monitor renewed tensions in the Middle East and their potential impact on inflation and interest rates.
The Dow Jones Industrial Average rose about 70 points, or 0.14%, while the S&P 500 was up by 0.11%. The Nasdaq Composite gained about 0.14%.
The cautious tone followed a strong session on Thursday, when the major US indexes rallied on gains in semiconductor stocks.
For the week, the S&P 500 is on track to gain 0.8%, while the Nasdaq Composite is headed for a 1.5% advance.
The Dow is down about 0.8% for the week.
SK Hynix listing takes center stage
Investors are closely watching SK Hynix's highly anticipated Nasdaq debut after the South Korean memory-chip maker raised about $26.5 billion by pricing its American depositary receipts at $149 each.
The offering is set to become the world's largest share sale since SpaceX's record-breaking IPO last month.
Despite the optimism, semiconductor stocks traded lower ahead of the listing.
Micron Technology fell about 2.4% in trading after gaining 4.5% in the previous session. Intel dropped roughly 3.3%, while Marvell Technology and Lam Research also declined.
Nvidia, Broadcom and AMD traded modestly lower, while both the iShares Semiconductor ETF and the VanEck Semiconductor ETF slipped.
Some investors have expressed concern that SK Hynix's large offering could temporarily draw capital away from US-listed memory chip companies.
Geopolitical risks and Fed outlook remain in focus
Investors also continued to monitor the conflict between the United States and Iran after fresh military exchanges this week renewed concerns about inflation.
Iran launched attacks on US military infrastructure in Gulf states on Thursday following US strikes on Iranian targets, adding to uncertainty surrounding global energy markets.
However, markets found some relief after President Donald Trump said Iran had reached out to negotiate a deal.
Officials from Qatar and Pakistan are also working to bring both sides back to the negotiating table, while an administration official told MS Now that technical talks would continue despite the latest military action.
New York Federal Reserve President John Williams said he does not expect the Middle East conflict to cause a sustained increase in energy prices through the remainder of the year.
Attention is now shifting to next week's US inflation report and testimony from Federal Reserve Chair Kevin Warsh before the House Committee on Financial Services.
According to LSEG data, markets are pricing in at least one 25-basis-point interest rate hike before the end of 2026.
Earnings season approaches
Investors are also preparing for the start of the second-quarter earnings season.
According to LSEG data, analysts expect S&P 500 companies to report average earnings growth of 24% from a year earlier, with technology companies expected to account for much of that increase.
Elsewhere, crypto-related stocks advanced in trading as bitcoin strengthened. Strategy gained 6.2%, while Coinbase rose 5.5% and Circle surged 15%.
Among individual movers, Delta Air Lines slipped 1.85% despite forecasting third-quarter profit above Wall Street expectations.
Meanwhile, European markets edged higher, with the Stoxx 600 rising 0.19%, while South Korea's Kospi outperformed regional peers with a 2.5% gain.
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