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Wall St. slightly higher after SK Hynix's impressive debut limits losses in chips stocks
S&P 500 climbed to a new record high on Friday as a 'blockbuster Nasdaq debut by South Korean chipmaker SK Hynix fueled optimism for semiconductor?stocks. Investors also looked forward to the quarterly earnings season, which begins next week. Artificial intelligence is back in the spotlight following SK Hynix's $170 opening price, which was 14% higher than its initial offering price. This high-profile U.S. IPO brought artificial intelligence to a new level. Memory-chip maker raised $26.5 billion by selling American depositary receipts at $149 per piece on Thursday. U.S. stock prices increased after U.S. president Donald Trump stated that Iran asked for continued talks, and that the U.S. agreed. However, the June ceasefire is "over." The attacks between the U.S. & Iran this week have re-ignited concerns that high energy costs could fuel inflation and force Federal Reserve to raise interest rates. Next week, the earnings season for the second quarter will begin with reports from major U.S. financial institutions. According to LSEG, analysts expect S&P500 earnings to increase by 24% compared to the previous year, with technology companies leading this growth. Terry Sandven is the chief equity strategist of U.S. Bank Wealth Management, based in Minneapolis, Minnesota. The banks will give us an accurate read on the economic strength, and how consumers and businesses are faring. The S&P 500 trades at a multiple of about 20 earnings, down slightly from a multiple of 21 earnings in late May. This is despite the benchmark being near record highs. The AI-driven rally this year has been fueled by the expectations of hyperscalers spending heavily. Recent volatility in the industry has been attributed to concerns about 'over stretched valuations' and profit-taking. The PHLX Chip Index gained 0.5% and remained about 11% below its record-breaking close on June 22, The?S&P500 was up 0.32% to 7,567.48, less than 1% below its record high June 2 close. The Nasdaq gained 0.23%, reaching 26,265.80, while the Dow Jones Industrial Average rose 0.31%, to 52,649.55. Meta Platforms has risen 5.7%, its highest level since April. Moderna fell?almost 11 percent and was on track for its worst day since over a year. Eight out of 11 S&P 500 sectors indexes have risen, with the information technology sector leading the way, up by 1.65%. Consumer discretionary followed, with a gain of 1.46%. The Fed's likely monetary policies will be revealed by the June inflation data, which is due to be released next week. Fed Chairman Kevin Warsh also has a scheduled appearance before the House Committee on Financial Services. Delta Air Lines fell 1.3% even though it forecasted a third-quarter profit that was above expectations. The S&P 500 has a ratio of 1.9 to 1. This means that the number of rising issues is greater than the number falling ones.
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European shares end four-week winning streak due to tech selling off, US-Iran War
European shares shook off a four-week streak of gains on Friday. The oil market was rattled by a 'unwinding in tech stocks' and the resurgence of tensions?in the Middle East. Investors lowered their hopes for a quick relief from the energy shock, and the?pan-European?STOXX600 fell 1.8% this week. Brent futures rose 5% this week after the U.S. and Iran exchanged strikes. Washington also reimposed sanctions against Iranian oil. The NATO summit in Turkey added a layer to the uncertainty, as U.S. president Donald Trump called Spain "a terrible partner" and threatened halting trade with that country. He later softened his rhetoric. The week's events show that geopolitical risk is still a major factor in investor sentiment. "There was an air of complacency, as if the war wasn't a problem anymore. This week, we were reminded that the war is still a problem, said Marta Norton. Investors sought diversification outside of the obvious AI beneficiaries, and were influenced by the ongoing rotation away from global tech giants. The markets will now focus on the earnings season, which could potentially provide fresh momentum for equities. Technology?sector fell 1.3% on Friday and 1.8% in the past week. Soitec and ASML fell 5.9% and 2.0%, respectively, for the day. Ipek Ozkardeskaya is a senior analyst at Swissquote Bank. He said: "The large swings in technology stocks... indicate investors are still under pressure despite the elevated valuations." Telecom stocks rose 1.3% after a 12.6% increase in Vodafone, after UAE telecoms company e& announced it would sell its stake to the family of French billionaire Xavier Niel. Airlines led the way in the travel and leisure sector, which saw a 1% increase. EasyJet, the UK's largest airline, surged by 14.3% following its agreement in principle with Apollo Global to acquire it for PS5.7 billion ($7.65billion). St. James's Place, one of money manager's biggest?partner firms?, dropped 8.5% on the STOXX 600 after a report that Sovereign Wealth was considering?a departure from the group. J.P.Morgan upgraded ArcelorMittal from "underweight" to "neutral", and its shares rose 6.4%. Voestalpine gained 6% and Salzgitter gained 6% respectively. The brokerage upgraded both stocks from "underweight" to "overweight". Ryanair closed 0.9% higher after gaining as much as 2.9% in the session. Two airport sources reported that a passenger was partially sucked out of a Ryanair plane shortly after takeoff in Greece. Volkswagen has fallen for the third day in a row. Two sources at the company said that powerful union representatives had blocked a major restructuring plan. On Friday, the automaker reported a 8.6% drop in global vehicle sales in the second quarter. This is the largest quarterly decline since 2004. Reporting by Tharuniyaa lakshmi in Bengaluru, Purvi agarwal and Niket Nishant; editing by Niveditarjee Bhattacharjee & Aurora Ellis
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European shares end four-week winning streak due to tech selling off, US-Iran War
European shares lost their four-week winning streak Friday as a result of a resurgence in tensions and unwinding in tech stocks. Investors lowered their hopes for a quick easing of the energy supply crisis. The?STOXX?600, the pan-European index, fell 1.8% this week. The U.S. traded strikes with Iran, and Washington reimposed sanctions on Iranian crude oil. The NATO summit in Turkey added a layer to the uncertainty. U.S. president Donald Trump had called Spain a “terrible partner” and threatened to stop trade with Spain, but later softened his rhetoric. The week's events have shown that geopolitical risk is still a major factor in investor sentiment. "There was an air of complacency about the war. It wasn't a big deal anymore." "We were reminded by Marta Norton this week that the war is still a problem," said Empower Investments' chief investment strategist. Investors also sought diversification outside of the obvious AI beneficiaries, and were impacted by the ongoing rotation away from global tech giants. The markets will now focus their attention on the upcoming earnings period to put the spotlight back onto fundamentals, and possibly provide fresh momentum for?equities. Technology fell 1.3% on Friday and 1.8% over the past week. Soitec and ASML fell 5.9% and 2.1% respectively on the day. Ipek Ozkardeskaya is a senior market analyst at Swissquote Bank. She said: "The large swings in technology stocks... indicate investors are still under pressure despite the elevated valuations." Telecom stocks rose 1.3%. Vodafone's stock price jumped 12.6% after UAE telecoms company e& announced it would sell a stake to the family of French billionaire Xavier Niel. Airlines led the way in the travel and leisure sector, which saw a 1% increase. EasyJet, a UK-based airline, surged by 14.3% following its agreement in principle with Apollo Global to takeover the company for PS5.7 billion ($7.65billion). St. James's Place, the largest laggard in the STOXX 600 index, dropped 8.5% following a report that Sovereign Wealth - one of its biggest partner firms - was considering leaving the group. J.P. Morgan upgraded ArcelorMittal from "underweight" to "neutral", sending its share price up 6.4%. Voestalpine gained 6% and Salzgitter gained 6%, respectively. The brokerage upgraded both stocks from "underweight" to "overweight". Ryanair closed 0.9% higher after having gained as much as 2.9% in the session. Two airport sources reported that a passenger was partially sucked out of a Ryanair plane shortly after takeoff in Greece. Volkswagen has fallen for a third day in a row. Two sources said that the company's "powerful" labour representatives had blocked a sweeping restructure plan. On Friday, the automaker reported a 8.6% drop in global vehicle sales in the second quarter. This is the largest quarterly decline since 2004. Reporting by Tharuniyaa lakshmi in Bengaluru, Purvi agarwal in New Delhi and Niket Nishant at the Bengaluru bureau; editing by Niveditarjee Bhattacharjee & Aurora Ellis
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RPT-Wall St. flat as SK Hynix debut's stellar performance limits losses in chip stock
Wall Street's major indexes traded in choppy trade on?Friday as SK Hynix, a?South Korean semiconductor company made a blockbuster Nasdaq debut. This helped to cap losses in a tumultuous stock market. Artificial intelligence is back in the spotlight following SK Hynix's $170 opening price, which was 14% higher than its initial offering price. This high-profile U.S. IPO brought artificial intelligence to a new level. Memory-chip maker SK Hynix raised $26.5 billion by selling American depositary receipts at $149 per piece on Thursday. The stock isn't soaring because this isn’t an IPO. This is a secondary offer of a publicly traded company. Steve Sosnick is chief strategist at Interactive Brokers. He said that it will allow U.S. shareholders to access the stock. The AI-driven rally this year has been fueled by the expectations of hyperscalers spending heavily. Recent volatility in the industry has been attributed to concerns about overvalued valuations and profit-taking. Semiconductor stocks were under pressure Friday. Micron Technology fell 3%, giving up part of its gains of 4.5% from the previous session. The Philadelphia SE Semiconductor Index dropped 0.8%. The communication services sector was also helped by a 6.1% increase in?Meta Platforms, which reached its highest level since last April. Seven out of 11 major S&P 500 sector were up. Moderna's 10.6% decline was the largest drag on the benchmark index. It was the worst single-day drop since more than a full year. At 11:57 am. At 11:57 a.m. ET, the Dow Jones Industrial Average gained 110.06 points or 0.21% to 52,597.47. The S&P 500 rose 9.75 points or 0.13% to 7,553.35 while the Nasdaq Composite fell 5.36 points or 0.02% to 26,201.53. The S&P 500, Nasdaq and blue-chip Dow were all on course for a second consecutive week of gains. Investors are on edge due to geopolitical concerns after the U.S. and Iran exchanged attacks this week. Donald Trump, the U.S. president, said that Iran asked for a continuation of?talks with the U.S. and that they had agreed. However the ceasefire in June was "over". The latest escalation has rekindled concerns about inflationary effects?of war, which could complicate Federal Reserve's monetary policies. The Fed will be able to gain new insight next week when it releases its June inflation data. Fed Chairman Kevin Warsh will also testify before the House Committee on Financial Services. According to LSEG, markets are pricing in a minimum of a 25-basis point rate increase by the?end 2026. Next week, top banks will report their quarterly results. According to LSEG data, analysts expect S&P 500 earnings will rise 23.7% compared to a year ago. Technology companies are expected to drive the majority of this growth. Delta Air Lines dropped 2.1% even after forecasting a third-quarter profit that exceeded expectations. On the NYSE, advancing issues outnumbered declining issues by a ratio of 1.19 to 1.39. The S&P 500, and the Nasdaq Composite, posted no new highs or lows in 52 weeks. (Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing by Pooja Desai and Shinjini Ganguli)
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Ukraine reports that Russian oil refineries, terminals, and tankers have been hit.
Ukraine's General Staff?said Friday that it had hit refineries, an oil terminal, and a depot in?Russia as well as tankers on the Sea of Azov. Kyiv is showing no signs of easing up its campaign against the Russian energy industry. The Ilsky oil refinery, located in the Krasnodar region, is one of the biggest in Russia's southern regions. It was also hit by an explosion at the Ust-Luga complex, in the Leningrad area, according to the Telegram app. Both are frequent targets of Ukrainian airstrikes. According to a statement, an oil terminal and "an oil depot" in the Rostov Region were also struck, with further explosions and flames. After months of Ukraine's campaign to damage Russia's oil infrastructure and logistics, Moscow was forced to ban the export of diesel to guarantee domestic supply. According to industry sources, the strikes caused domestic gasoline production to fall to a level equivalent to around 65%. Robert Brovdi said that Ukraine also struck 10 tankers on the Sea of Azov. This is among nearly 50 fuel vessels that were damaged this week. Kyiv wants to isolate Crimea and limit fuel supplies to enemy troops.
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Sources say that the lower freight rates for Urals shipments from Russia to India are due to increased tanker availability.
According to three sources, the freight rates for tanker shipments from western ports of Russia's Urals crude to India have fallen in July compared to last month. This is because increased vessel availability and the summer season eased pressure on the market. The lower transportation costs are a relief for Russian oil exporters whose margins were under pressure due to the wider discounts on Urals crude, as a result of weak demand in Asia. Sources claim that the cost to ship a cargo of 100,000 metric tonnes of Aframax from the Baltic port of Primorsk, in the Baltic Sea, to India, has dropped from $10 million to $12 million. Sources said that the freight rates for Suezmax tanks carrying 140,000 tons of crude oil from the Black Sea port of Novorossiisk in India to India has dropped to $10 million, down from $15 million last month. The decline in the market was attributed to a weaker seasonal demand, and increased availability of vessels following the tightening of freight markets earlier this year. In recent days, the United States and Iran resumed their attacks, re-igniting fears over shipping through the Strait of Hormuz. This is a major route for oil exports around the world. After the U.S. - Iran conflict broke out in spring, the disruption of traffic through the Strait caused a sharp rise in tanker prices worldwide. This also increased the transportation costs for Russian crude oil suppliers. Traders say freight rates may rise again if the Strait of Hormuz is interrupted once more. Russia's oil production is nearing record levels. This will support the demand for tankers, and could increase freight rates. (Reporting and Editing by Louise Heavens).
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Spanish wildfire victims burnt in cars after roads became death traps
Residents in rural Andalusian towns around Los Gallardos, southern Spain chose to flee as?flames approached and smoke filled the air. Some paid with their lives for this decision. Residents had to decide whether they wanted to take a chance by leaving or stay and shelter in place. Authorities advised some residents to evacuate above Los Gallardos and indicated a safe route. Later, it was deemed safer for those living in the densely forested Bedar hamlet to remain where they were due the proximity of the fire. Antonio Sanz said that in situations such as this, everyone must follow the route indicated. "Unfortunately, in this case a decision was made to use another route which wasn't recommended for evacuation. Finding another route out through a dry riverbed proved to be a trap. As the flames approached Antonio?Rubio a handyman from Bedar said that the smoke made it impossible for him to stay in one place. We left the house at 5 pm on Thursday afternoon. "The fire did not reach my home - it stopped just before it, but we could see so much smoke even though the flames were some distance away. We had to leave," said he. "We left of our own free will." In one of Spain's most deadly wildfires, 12 people have been confirmed dead and 23 still missing. Sanz stated that four people who he described as 'British' because the steering wheel was on the right, died in a vehicle. Seven other people were found dead in their vehicles after they had abandoned them to run away on foot. He added that "the village of Bedar was not affected by flames in many cases, so the order to shelter-in-place avoided a more severe situation." Fire Blocks Roads Sonia, an unidentified Spanish woman who lives in Los Gallardos, told reporters that she took in relatives after authorities ordered them to evacuate by 7 pm (1700 GMT). She stated that they were told to take a route up the mountain and then return back down the coast. She said, "There are many homes in the mountains in the middle countryside. People would choose any road they could." The road between Bedar and Los Gallardos is blocked because the fire has crossed it. As authorities searched the globe for missing persons, worried relatives posted messages on local forums and social media. A woman from the United States sent a message to local emergency services, saying that her brother was among 10 people who attempted to escape by escaping through a valley near a stream. She shared the coordinates with the emergency services and asked them to look for him. Regional President Juanma Moreno said that the urge to run was understandable. "Many people run away when they see a fire. They think they are familiar with the routes, but without the right information, they can easily become a trap. Angel Collado, Bedar mayor, said that many of the affected residents were foreigners. They are British and Belgian residents. I've even officiated at some of their marriages. He told reporters on the scene that he felt sadness and pain. Reporting by Corina Poons and Aislinn laing, writing by Aislinn laing; editing by Sharon Singleton
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Wall St. steadies before South Korean chip behemoth SK Hynix debut
Wall Street indexes remained steady on Friday as investors awaited SK Hynix's highly anticipated Nasdaq debut, shifting their focus away from the recent escalation of the Middle East conflict. The AI market takes centre stage as SK Hynix prepares to list in the U.S. This offering will be the largest share sale in history after SpaceX's record breaking IPO last week. The chipmaker raised $26.5 billion by selling American Depositary Receipts at $149 each on Thursday. ADRs of the company are expected to open at $176.01 - about 18% higher than their offer price. We've heard it's oversubscribed (SK Hynix), and people want the stock. I don't believe it will be a catastrophe or cause negative volatility. In fact, once the market opens, the whole chip sector could be lifted as we'move towards the weekend", said Kathleen Brooks. The AI rally this year has been fueled by the expectation of heavy spending by hyperscalers. Recent volatility in the semiconductor industry has been attributed to concerns about stretched valuations and profit-taking. Semiconductor shares were under pressure Friday. Memory-chip maker Micron Technology eased 1.6% after gaining 4.5% the previous session. In choppy trade, the Philadelphia SE Semiconductor Index fell by 0.5%. Meta Platforms shares grew 6.1%, helping to extend?gains that helped boost the communication services sector by 0.9%. On the S&P500 benchmark, eight out of eleven sectors traded higher. The S&P 500, Nasdaq and blue-chip Dow were all on course for weekly gains. At 9:50 a.m. The Dow Jones Industrial Average gained 35.60 points or 0.07% to 52,523.01; the S&P 500 rose 11.18 points or 0.15% to 7,554.82; and the Nasdaq Composite added 13.40 points or 0.05% to 26,220.29. Investors are on edge because of the geopolitical risks after Iranian forces launched an attack on U.S. military facilities in Gulf states, on Thursday. This follows U.S. attacks on Iran's eastern and southern provinces. The latest escalation has revived concerns over the inflationary effect of war. John Williams, the president of the New York Federal Reserve, said that he didn't expect Middle East hostilities would cause energy prices to rise?for?the rest of the year. The Federal Reserve will be able to gain new insight next week when it releases its June inflation figures. Fed Chairman Kevin Warsh also has a scheduled appearance before the House Committee for Financial Services. According to LSEG data, markets are pricing at least a 25-basis point rate increase by the end 2026. Delta Air Lines fell 2.5% even though it forecasted a third-quarter profit that was above expectations. Stocks related to crypto-currencies have risen in line with bitcoin's gains. Coinbase and Strategy both added 3.1%, while Strategy gained 5%. Next week, earnings are expected to pick up speed. According to LSEG data, analysts expect S&P500 earnings?to increase 24% compared to a year ago, with technology companies 'driving the growth. On the NYSE and the Nasdaq, the number of advancers outnumbered the number of decliners in a ratio 1.79 to 1. The S&P 500, and the Nasdaq Composite, posted no new highs or lows in 52 weeks. (Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing by Pooja Desai and Shinjini Ganguli)
Wall St flattens as SK Hynix debut's stellar performance limits losses in chip stock
Wall Street's major indexes fluctuated little in Friday's choppy trade, with the Nasdaq debut by SK Hynix of South Korea. This capped a week that saw chip stocks sway at the end.
Artificial intelligence is back in the spotlight following SK Hynix's $170 opening price, which was 14% higher than its initial offering price. This high-profile U.S. listing brought artificial intelligence to the forefront. Memory-chip maker SK Hynix raised $26.5 billion by selling American depositary receipts at $149 per piece on Thursday.
The stock is not advancing because this is not an IPO. This is a secondary offer of a publicly traded company. It will allow U.S. shareholders to access the stock, which would be good news for all global holders," said Steve Sosnick. Chief strategist at Interactive Brokers.
The chipmakers are among the largest beneficiaries of this year’s AI-driven rally. This is largely due to expectations that hyperscalers will spend heavily. Recent volatility in the industry has been attributed to concerns about overvalued valuations and profit-taking.
Semiconductor stocks?came under pressure Friday. Micron Technology fell 3%, giving up part of the 4.5% gains it had made in the previous session. The Philadelphia SE Semiconductor Index dropped 0.8%.
Meta Platforms, which has been a leader in the S&P 500 since April, rose 6.1% to its highest level ever. This helped boost the Communication Services sector by 0.5%. Seven out of 11 major S&P sectors are trading higher.
Moderna's 10.6% decline was the largest drag on the benchmark index. This was its biggest one-day drop in over a year.
At 11:57 am. At 11:57 a.m. ET, the Dow Jones Industrial Average gained 110.06 points or 0.21% to 52,597.47. The S&P 500 rose 9.75 points or 0.13% to 7,553.35 while the Nasdaq Composite fell 5.36 points or 0.02% to 26,201.53.
The S&P 500, Nasdaq and blue-chip Dow were all on course for a second consecutive week of gains.
Investors are on edge due to geopolitical concerns after the U.S. and Iran exchanged attacks this week. Donald Trump, the U.S. president, said that Iran asked for a continuation of talks and that the U.S. agreed. However, he added that June's ceasefire had "ended".
The latest escalation has rekindled concerns over the inflationary impact that the 'war' could have on the Federal Reserve’s monetary policy.
The Fed will be able to gain new insight next week when it releases its June inflation data. Fed Chairman Kevin Warsh will also testify in front of the House Committee on Financial Services.
According to LSEG data, markets are pricing in a minimum of a 25-basis point rate increase by the end?2026.
Next week, top banks will report their quarterly results. According to LSEG data, analysts expect S&P 500 earnings will rise by 23.7% compared to a year ago. Technology companies are expected to drive the majority of this growth.
Delta Air Lines fell?2.1% even after forecasting a third-quarter profit that exceeded expectations.
On the NYSE, advancing issues outnumbered declining issues by a ratio of 1.19 to 1.39.
The S&P 500, and the Nasdaq Composite, posted no new highs or lows in 52 weeks. (Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing by Pooja Desai and Shinjini Ganguli)
(source: Reuters)