Dow rises as S&P 500 nears record, SK Hynix debut boosts AI chip stocks

• SK Hynix opened at $170, 14% above its $149 ADR offering price, renewing optimism for memory-chip makers; major chip stocks like Micron have surged over 200% in 2026.
• Meta Platforms gained 6% after Bank of America reiterated a Buy rating and reports suggested improved cost efficiency for AI infrastructure investments.
• The S&P 500's forward P/E ratio has eased to around 20x from 21x in late May despite near-record highs, reflecting stronger corporate earnings expectations ahead of bank earnings and inflation data next week.

Market Summary: S&P 500 Nears Record High on AI Chip Optimism

Market Performance (July 10, 2026):

U.S. equities closed higher Friday, with the Dow Jones rising 148.28 points (+0.28%) to 52,635.69, the S&P 500 gaining 0.38% to 7,572.36, and the Nasdaq advancing 0.25% to 26,273.21. The S&P 500 closed just below record highs, up roughly 1% for the week.

Key Catalyst:

SK Hynix made its Nasdaq debut after raising over $26 billion in one of the world's largest offerings. The South Korean memory-chip maker opened at $170, 14% above its ADR offering price of $149. The listing reignited investor enthusiasm for AI-related semiconductor stocks.

Sector Performance:

Chip stocks led gains despite recent volatility. Meta Platforms surged approximately 6% following a Bank of America Buy rating and reports of improved AI infrastructure cost efficiency. Year-to-date, semiconductor stocks have delivered exceptional returns: Micron Technology up 200%, while Lam Research, Marvell Technology, and Intel have all doubled.

Market Drivers:

• AI and semiconductor optimism remains the dominant theme
• Easing Middle East tensions after President Trump indicated continued U.S.-Iran negotiations
• Oil price stabilization supporting equity sentiment

Looking Ahead:

Second-quarter earnings season begins next week with major U.S. banks reporting. Analysts project S&P 500 earnings growth of 24% year-over-year, largely driven by technology companies. The index trades at a forward P/E ratio of approximately 20x, down from 21x in late May. Key events include upcoming U.S. inflation data and Federal Reserve Chair Kevin Warsh's House testimony on interest rate outlook.

Global Markets:

Mixed sentiment prevailed with South Korea's Kospi up 2.5%, Japan's Nikkei gaining 1.2%, while China's CSI 300 declined 1.96%.