Wall Street holds steady ahead of SK Hynix's highly anticipated Nasdaq debut

Wall Street's major indexes were little changed on Friday as investor attention shifted to the upcoming Nasdaq debut of South Korean chipmaker SK Hynix, while concerns over the latest developments in US-Iran tensions took a back seat.

Focus shifts to semiconductor sector ahead of the biggest listing since SpaceX

The artificial intelligence sector is in the spotlight ahead of the US listing of the South Korean memory chip giant, in what is expected to be the world's largest equity offering since SpaceX's record-breaking IPO last month.

SK Hynix raised approximately $26.5 billion on Thursday after pricing its American depositary receipts (ADRs) at $149 per share. Pre-market trading indicated the stock could open at $176.01, nearly 18% above its offering price.

"We've heard that demand for SK Hynix shares significantly exceeded supply, and there is tremendous appetite for the stock," said Kathleen Brooks, Research Director at XTB. "I don't think the listing will create any market disruption or downside volatility. Instead, it could provide a positive boost for semiconductor stocks heading into the weekend."

Semiconductor companies have been among the biggest beneficiaries of this year's AI-driven rally, supported by expectations of sustained spending by major cloud computing firms. However, concerns over elevated valuations and profit-taking have recently increased volatility across the sector.

Chip stocks came under modest pressure during Friday's session, with Micron Technology falling 1.6% after jumping 4.5% in the previous session, while the Philadelphia Semiconductor Index (SOX) slipped 0.5% in choppy trading.

Meanwhile, Meta Platforms climbed 6.1%, extending its recent gains and helping lift the communication services sector by around 0.9%. Eight of the S&P 500's 11 major sectors traded higher during the session.

Markets await inflation data and earnings season amid lingering geopolitical risks

As of 9:50 a.m. ET, the Dow Jones Industrial Average was up 35.60 points, or 0.07%, at 52,523.01.

The S&P 500 gained 11.18 points, or 0.15%, to 7,554.82, while the Nasdaq Composite rose 13.40 points, or 0.05%, to 26,220.29.

Both the S&P 500 and Nasdaq remain on track to finish the week higher, while the Dow appears set to snap a four-week winning streak.

Geopolitical risks continue to linger after Iranian forces launched attacks on US military facilities in Gulf states on Thursday in response to American strikes on military targets in Iran's eastern and coastal provinces.

The latest escalation revived concerns about the potential inflationary impact of the conflict. However, New York Federal Reserve President John Williams said on Thursday that he does not expect Middle East tensions to trigger a sustained increase in energy prices over the remainder of the year.

Investors are now looking ahead to next week's US June inflation report, which could provide fresh guidance on the outlook for monetary policy. Federal Reserve Chair Kevin Warsh is also scheduled to testify before the US House Financial Services Committee.

According to LSEG data, markets are currently pricing in at least one 25-basis-point Federal Reserve rate hike by the end of 2026.

Among individual stocks, Delta Air Lines fell 2.5% despite issuing third-quarter earnings guidance that exceeded market expectations.

Meanwhile, cryptocurrency-related stocks advanced alongside Bitcoin, with Strategy gaining 5% and Coinbase rising 3.1%.

With the second-quarter earnings season set to begin next week, LSEG analysts expect S&P 500 companies to report annual earnings growth of 24%, with technology firms accounting for the largest share of that increase.

Market breadth remained positive, with advancing stocks outnumbering decliners by 1.79-to-1 on the New York Stock Exchange and by 1.08-to-1 on the Nasdaq. Neither the S&P 500 nor the Nasdaq Composite recorded a new 52-week high or low during the session.