4:20pm: Tech keeps Wall Street on track
Wall Street ended the week on a positive note, with all three major indexes posting modest gains after a choppy few days of trading.
The Dow Jones Industrial Average climbed 150 points, or 0.3%, to 52,637, while the S&P 500 added 0.4% to close at 7,575. The Nasdaq Composite also gained 0.3%, finishing at 26,282.
Despite mid-week jitters sparked by escalating tensions in the Middle East, investors largely shrugged off the uncertainty, with heavyweight technology stocks helping drive the market's rebound. The S&P 500 notched its fourth weekly gain in the past five weeks, while the Nasdaq also finished the week higher.
One of Friday's standout performers was SK Hynix, which made a strong debut on US markets. Shares of the South Korean memory chip maker surged nearly 13% above their IPO price, giving the tech sector an additional boost and highlighting continued investor appetite for AI-related semiconductor companies.
3:45pm: Proactive news headlines
- Giyani Metals filed the technical report supporting the definitive feasibility study for its K.Hill Battery-Grade Manganese Project in Botswana, confirming previously released economics that include a post-tax net present value of $482 million and a 20.3% internal rate of return.
- New Era Energy & Digital (NASDAQ:NUAI) rose in premarket trading after a US bankruptcy court approved its settlement with the trustee overseeing the Acacia bankruptcy estates, resolving all trustee-controlled claims related to a New Mexico lawsuit.
- Chariot said it will seek shareholder approval for a 25-for-1 share consolidation as part of its strategy to refocus the company on its upstream oil and gas business.
- Arc Minerals said it expects to begin drilling at its Virgo copper project in Botswana in August as geophysical work nears completion and the company advances discussions with drilling contractors.
2:45pm: Market movers
- SK Hynix began trading its American Depositary Receipts on the Nasdaq after completing the largest-ever US listing by a foreign company, raising $26.5 billion in an offering that was seven times oversubscribed amid strong demand for its AI-focused high-bandwidth memory business.
- Circle Internet Group gained after receiving regulatory approval from the US Office of the Comptroller of the Currency to establish Circle National Trust, a federally regulated national trust bank that will support the infrastructure behind its USDC stablecoin.
- Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) announced plans to invest more than C$13 billion to build its first Canadian data centre in Alberta, a 1-gigawatt AI-optimized facility that will expand the company's global computing infrastructure.
- Aritzia Inc (TSX:ATZ) topped first-quarter earnings expectations and raised its full-year revenue forecast as strong comparable sales, growing US demand and higher digital revenue drove a sharp increase in profit.
1:45pm: SK Hynix stock pops
Stocks edged higher on Friday as shares of South Korean memory chip maker and Nvidia supplier SK Hynix surged more than 14% in their US market debut.
The company raised $26.5 billion in the largest US IPO by a foreign company, with SK Group chairman Chey Tae-won telling Bloomberg the chipmaker could eventually expand beyond selling memory chips to offering "memory as a service" as a new business model.
12:40pm: Oil set for weekly gain
Crude oil is set for a weekly gain of about 5% as renewed US-Iran strikes disrupt tanker traffic through the Strait of Hormuz, fuelling concerns over potential global supply disruptions, according to Axel Rudolph, Chief Technical Analyst at IG.
“The oil price is on track for its first weekly gain in a month, rising by around 5% amid renewed US-Iran strikes which disrupt tanker traffic through the Strait of Hormuz, raising concerns over global energy supplies," Rudolph said.
"While negotiations between Washington and Tehran on a longer-term agreement remain ongoing, the International Energy Agency warns that a prolonged conflict could hinder efforts to rebuild global oil inventories, although record crude production from the UAE has helped to partially offset supply disruptions."
11:10am: Fed testimony, inflation and retail sales next week
Bank of America said markets will be watching a busy week of economic data and Federal Reserve commentary, with Fed Chair Warsh’s semiannual testimony, June inflation data and retail sales figures set to take centre stage.
The bank said Warsh’s remarks on Tuesday will be closely scrutinized for clues on the Fed’s policy outlook, alongside the release of June consumer price index (CPI) data. June producer prices, due Wednesday, will provide further insight into inflation trends ahead of the Fed’s July meeting and help refine expectations for the personal consumption expenditures (PCE) inflation measure.
Investors will also assess the health of the US consumer through Thursday’s retail sales report, while other releases including industrial production, housing starts and building permits, and the preliminary July University of Michigan consumer sentiment survey will provide additional signals on economic momentum.
A number of Fed officials are also scheduled to speak throughout the week, including Waller, Goolsbee, Williams, Musalem, Logan and Jefferson.
10:00am: Investors welcome SK Hynix IPO
Wall Street opened little changed on Friday as investors took a breather following this week's rally, with the S&P 500 and Nasdaq on track for modest weekly gains while the Dow looked set to finish the week largely flat.
The cautious start comes as investors weigh lofty valuations in artificial intelligence and semiconductor stocks after their recent surge, even as optimism builds ahead of the upcoming earnings season.
One of the day's biggest market stories is SK Hynix's Nasdaq debut following its record-breaking US$26.5 billion share sale, the largest US IPO ever by a foreign company. The listing is being closely watched as a gauge of investor demand for AI infrastructure companies.
Among individual stocks, Delta Air Lines fell nearly 3% despite reporting stronger-than-expected second-quarter earnings and revenue, raising its full-year guidance and boosting its dividend. Investors appeared focused on higher fuel and labor costs.
Kathleen Brooks, research director at XTB, said this week's rally in chip stocks reflects renewed confidence heading into earnings season.
"We do not think that the fundamental picture has changed, and any pullback in US stocks will be short-lived," Brooks said.
Ahead of the bell
Expect a torpid start to the final trading day of the week. S&P 500 futures were flat on Friday, holding on to a week that has gone the index's way despite a wobble in semiconductors ahead of the opening bell.
Nasdaq 100 futures slipped 0.2%, while Dow Jones Industrial Average futures added 111 points, or 0.2%.
The S&P 500 is heading for a weekly gain of 0.8% and the Nasdaq Composite for 1.5%, though the Dow is on course to end the period down 0.8%.
Chipmakers were the soft spot, with traders eyeing the US debut of South Korea's SK Hynix, which is pricing its American depositary receipts at $149 each.
The worry is that the memory group, up sharply this year on demand for its chips, will pull investor money away from domestic names.
Micron Technology, Marvell Technology and Lam Research each shed around 1% before the open, while Intel dropped 2%.
Nvidia, Broadcom and AMD also traded lower, dragging the iShares Semiconductor ETF down 1.1%.
Thursday's rally was helped by cooling oil prices after President Donald Trump said Iran had called to make a deal.
Qatar and Pakistan are working to bring Washington and Tehran back to the table, with technical talks continuing despite air attacks from both sides.