S&P 500, Nasdaq futures slip as investors eye SK Hynix listing, Middle East risks

• SK Hynix priced its American Depositary Receipts at $149, with the listing marking a major test of investor appetite for AI-related semiconductor stocks amid concerns over stretched valuations
• Memory chipmakers led premarket declines, with Micron Technology down 3.2%, Western Digital down 2.8%, and Seagate down 2.7% as profit-taking hit the sector
• Iranian attacks on U.S. military facilities in Gulf states raised inflation concerns, though Fed President John Williams said he does not expect sustained energy price increases for the rest of 2026

Market Summary

Market Movements:

U.S. futures showed mixed performance on Friday, with Dow futures up 0.1%, while S&P 500 and Nasdaq futures declined 0.2% and 0.6% respectively, pausing a recent Wall Street rally. As of Thursday's close, both the S&P 500 and Nasdaq were tracking weekly gains.

SK Hynix Listing:

South Korean memory-chip maker SK Hynix is making its highly anticipated Nasdaq debut, having priced its American Depositary Receipts at $149, raising approximately $26.5 billion. This marks the world's second-largest offering following a record-breaking IPO last month. However, analyst sentiment suggests the listing may have come "a few months too late" as AI enthusiasm has cooled.

Semiconductor Sector:

Chip stocks retreated in premarket trading despite being major beneficiaries of the AI-driven rally. Micron Technology fell 3.2%, Western Digital dropped 2.8%, and Seagate Technology declined 2.7%. Concerns over stretched valuations and profit-taking have recently increased sector volatility.

Geopolitical Risks:

Iranian armed forces launched attacks on U.S. military infrastructure in Gulf states Thursday, escalating Middle East tensions and raising inflation concerns. New York Fed President John Williams stated he doesn't expect sustained energy price increases, though uncertainty remains around the Fed's upcoming policy meeting.

Forward Outlook:

Markets are pricing in at least one 25-basis-point rate hike by end of 2026. Earnings season intensifies next week, with S&P 500 earnings expected to rise 24% year-over-year, driven largely by technology companies. Fed Chair Kevin Warsh is scheduled to testify before Congress next week.