Key facts
- S&P 500 and Nasdaq futures declined on Friday.
- SK Hynix priced its American Depositary Receipts at $149, raising $26.5 billion.
- Semiconductor stocks, including Micron, Western Digital, and Seagate, fell in premarket trading.
- Iranian forces attacked U.S. military infrastructure in the Gulf states.
- New York Fed President John Williams stated he does not expect sustained energy price rises.
U.S. stock futures pointed lower on Friday, halting a rally as investors grappled with Middle East tensions and awaited the Nasdaq debut of South Korean chipmaker SK Hynix. Concerns over the valuations of AI-related stocks also persisted, leading to declines in semiconductor shares.
SK Hynix priced its American Depositary Receipts at $149 per share, raising approximately $26.5 billion, in what is expected to be the second-largest share sale globally. While some analysts noted the offering came after a strong run in memory chip suppliers, demand was reportedly stronger than anticipated, suggesting the rally might continue.
Chipmakers, beneficiaries of the AI-driven boom, have recently experienced volatility due to stretched valuations and profit-taking. Micron Technology fell 3.2% in premarket trading, while Western Digital and Seagate Technology also saw declines.
Geopolitical risks were heightened after Iranian forces attacked U.S. military infrastructure in Gulf states, reviving concerns about potential inflationary impacts. However, New York Federal Reserve President John Williams indicated he does not expect these hostilities to cause sustained energy price increases for the remainder of the year.
European shares traded with little change earlier, with gains in mining and travel sectors offset by tech stock declines. EasyJet shares surged on a takeover approach from Apollo Global.