Wall Street muted ahead of SK Hynix debut on Nasdaq; AI stocks and crypto shares gain

US stock markets traded largely flat on Friday as investors awaited the much-anticipated Nasdaq debut of South Korean semiconductor giant SK Hynix, whose mega listing is expected to become one of the largest stock market debuts globally.

At 09:50 a.m. ET, the Dow Jones Industrial Average rose 35.60 points, or 0.07%, to 52,523.01, the S&P 500 gained 11.18 points, or 0.15%, to 7,554.82 and the Nasdaq Composite gained 13.40 points, or 0.05%, to 26,220.29.

At the opening bell, the Dow Jones Industrial Average rose 135.5 points, or 0.26%, to 52622.92. The S&P 500 rose 4.0 points, or 0.05%, to 7547.64​, while the Nasdaq Composite dropped 31.4 points, or 0.12%, to 26175.535.

The advanced memory chip supplier, a key player in the artificial intelligence (AI) ecosystem, raised $26.5 billion through in the US. It was scheduled to begin trading later in the session. The offering ranks among the biggest stock sales worldwide, following the record-setting initial public offering of SpaceX last month.

SK Hynix American Depositary Receipts (ADRs) were indicated to open at $176.01, representing an increase of nearly 18% from the company’s offering price, reflecting strong investor demand for AI-related semiconductor companies.

Chipmakers have been among the biggest winners of this year’s AI-driven market rally, as investors continue to bet on increased spending by major cloud computing companies, or hyperscalers, on artificial intelligence infrastructure.

Meanwhile, crude oil prices stabilised after a sharp rise earlier in the week as renewed clashes between the United States and Iran intensified concerns over possible supply disruptions and the potential inflationary impact of geopolitical tensions.

In the fixed-income market, US Treasury yields remained mostly steady. The benchmark 10-year Treasury yield edged slightly higher to 4.55%, compared with 4.54% at Thursday’s close.

Meta Platforms shares jumped 6.1%, adding to recent gains driven by investor optimism around artificial intelligence investments and business growth.

Shares of Micron Technology declined 1.6%, despite continued strength in the broader chip sector.

Delta Air Lines stock dropped 2.5% even after the airline projected third-quarter earnings above Wall Street expectations, as investors weighed broader industry pressures.

Cryptocurrency-linked stocks also moved higher as bitcoin prices gained momentum. Strategy shares rose 5%, while Coinbase advanced 3.1%.

Gold prices faced downward pressure on Friday as a potent mix of surging crude oil prices and intensified friction between the US and Iran weighed on investor sentiment. This escalation has sparked widespread concern across global markets that the Federal Reserve will feel compelled to maintain its aggressive, tight monetary policy for a more extended period than previously anticipated to combat lingering inflationary pressures.

By 1106 GMT, spot gold fell 0.4% to $4,105.97 per ounce. US gold futures for August delivery slipped 0.6% to $4,114.80 per ounce.

Among other metals, spot silver fell 1.1% to $59.34 per ounce, platinum gained 0.51% to $1,618.47 and palladium climbed 1.6% to $1,267.80.