Stocks Close the Week With Gains
U.S. stocks finished higher on Friday as investors continued to show strong demand for companies tied to the artificial intelligence boom. The S&P 500 gained 0.4%, securing its fourth weekly advance in the past five weeks. The Dow Jones Industrial Average rose 149 points, or 0.3%, while the Nasdaq composite added 0.3%.
SK Hynix Debuts Strongly on Nasdaq
SK Hynix, the major South Korean memory chipmaker, drew significant attention in its first day of trading on the Nasdaq. The company raised about 26.5 billion dollars by selling American depositary shares at 149 dollars each. After trading began around midday, the stock climbed quickly and ended the session with a gain of 13.1%.
AI Demand Fuels Memory Chip Optimism
The company’s shares in Seoul had already surged 634% over the past year, lifted by enthusiasm around artificial intelligence. Demand for memory chips has created real earnings growth for chipmakers, but it has also raised questions about whether AI-related valuations have climbed too far.
Investors Weigh AI Euphoria Against Risk
The boom in chips and data centers has pushed several technology stocks to major gains. At the same time, investors are debating whether global spending on AI infrastructure will produce enough productivity improvements and profit growth to justify current prices.
Nvidia Lifts the S&P 500
Nvidia was the strongest individual contributor to the S&P 500’s gain on Friday, rising 4%. Because of its size and central role in AI infrastructure, the stock continues to have a large influence on the broader market’s direction.
Earnings Season Moves Into Focus
Beyond artificial intelligence, Wall Street is turning its attention to the upcoming earnings season. Investors will be watching whether companies can deliver enough profit growth to support stock prices that remain broadly near record levels.
Delta Beats Expectations but Shares Fall
Delta Air Lines reported stronger profit and revenue for the spring than analysts expected. The company said robust travel demand, including from corporate customers, helped it absorb higher fuel prices between April and June. Delta also issued a summer profit forecast whose midpoint came in above analyst expectations.
Strong Yearly Rally Limits Delta Reaction
Despite the upbeat results, Delta shares fell 1.8%. The decline came after the stock had already gained 28.2% for the year before Friday’s session, suggesting that much of the optimism may have already been priced in.
Major Banks Prepare to Report
Next week will bring earnings reports from several of the biggest U.S. banks. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo are all scheduled to release results on Tuesday, making the banking sector a key early test for the reporting season.
Circle Gains After Regulatory Approval
Circle Internet Group rose 5% after the company behind the USDC cryptocurrency said it received U.S. regulatory approval to establish a bank. The institution will operate under the name Circle National Trust.
Circle CEO Highlights Digital Asset Milestone
Circle CEO Jeremy Allaire said the approval “marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system.” USDC is designed to maintain a value of 1 dollar.
WD-40 Jumps on Strong Profit
WD-40 was another standout, with its stock rising 10.6% after the company reported quarterly profit that was much stronger than analysts had expected.
Major Index Closing Levels
For the day, the S&P 500 rose 31.75 points to close at 7,575.39. The Dow Jones Industrial Average gained 149.60 points to finish at 52,367.01, while the Nasdaq composite climbed 74.72 points to 26,281.61.
Oil Prices Ease From Earlier Jump
Oil prices continued to give back some of their earlier gains from the week. Brent crude, the international benchmark, slipped 0.4% to 76.01 dollars per barrel. That remains above the 72 dollar level seen at the start of the week, but far below the wartime peak of nearly 120 dollars.
Hormuz Risk Remains a Concern
Traders remain focused on whether the war with Iran could disrupt global crude flows. The main concern is that continued fighting could block oil tankers from moving through the Strait of Hormuz, a key route for shipments from the Persian Gulf to customers around the world.
Trump Says Talks Continue but Ceasefire Ends
President Donald Trump said on his social media platform that he had agreed to continue talks with Iran. At the same time, he said the United States had told Iran “that the Cease Fire is OVER!”
Treasury Yields Edge Higher
In the bond market, Treasury yields moved slightly higher. The yield on the 10-year Treasury rose to 4.56%, up from 4.54% late Thursday.
Higher Yields Keep Pressure on Markets
Elevated yields have been a challenge for financial markets around the world. Investors are concerned that expensive oil and persistent inflation could push the Federal Reserve and other central banks toward higher interest rates.
Rate Concerns Shape Investor Sentiment
Higher interest rates can help control inflation, but they also slow economic activity and weigh on the prices of stocks, bonds and other investments. This tension continues to shape market expectations as investors look ahead to inflation data and central bank decisions.
Global Markets End Mixed
Outside the United States, stock markets showed mixed results. South Korea’s Kospi jumped 2.5%, helped by strength in technology shares, while Japan’s Nikkei 225 rose 1.2%. In China, stocks in Shanghai fell 1%.
