Dow rises as Wall Street awaits SK Hynix debut, tracks Iran tensions

• SK Hynix priced its American depositary receipts at $149 each in what will become the world's largest IPO, but U.S. chip stocks like Micron (-2.4%) and Intel (-3.3%) fell ahead of the debut
• Renewed U.S.-Iran military exchanges raised inflation concerns, though NY Fed President Williams said he does not expect sustained energy price increases through 2026
• The S&P 500 is on track for a 0.8% weekly gain while the Nasdaq is headed for a 1.5% advance; analysts expect second-quarter earnings growth of 24% for S&P 500 companies, driven largely by technology

Market Summary: Dow Rises Amid SK Hynix Debut and Geopolitical Tensions

Market Performance:

Wall Street opened higher on Friday with the Dow Jones up 70 points (+0.14%), S&P 500 gaining 0.11%, and Nasdaq Composite rising 0.14%. For the week, the S&P 500 tracks toward a 0.8% gain and Nasdaq toward 1.5%, while the Dow is down 0.8%.

SK Hynix Nasdaq Debut:

South Korean memory-chip maker SK Hynix launched the world's largest IPO, raising $26.5 billion by pricing American depositary receipts at $149 each. Despite optimism, semiconductor stocks traded lower ahead of the listing. Micron Technology fell 2.4%, Intel dropped 3.3%, and Marvell Technology and Lam Research also declined. Nvidia, Broadcom, and AMD traded modestly lower. Investors expressed concern that SK Hynix's large offering could temporarily draw capital away from US-listed memory chip competitors.

Geopolitical Developments:

US-Iran tensions escalated after Iran attacked US military infrastructure in Gulf states Thursday, following US strikes on Iranian targets. President Trump stated Iran had reached out for negotiations, with Qatar and Pakistan mediating. New York Fed President John Williams indicated he doesn't expect sustained energy price increases from the Middle East conflict.

Forward Outlook:

Markets are pricing in at least one 25-basis-point rate hike before end-2026. Investors await next week's US inflation report and Fed Chair Kevin Warsh's House testimony. Q2 earnings season approaches with analysts expecting 24% average S&P 500 earnings growth year-over-year, driven primarily by technology companies.

Other Movers:

Crypto-related stocks rallied as Bitcoin strengthened, with Strategy up 6.2% and Coinbase gaining 5.5%. Delta Air Lines slipped 1.85% despite strong Q3 profit forecasts.