US stocks ended higher on Friday, with the S&P 500 closing just shy of a record high as enthusiasm around artificial intelligence and semiconductor stocks offset concerns over renewed tensions in the Middle East.
Investors also turned their attention to the start of the second-quarter earnings season next week, when major US banks will begin reporting results.
The Dow Jones Industrial Average rose 148.28 points, or 0.28%, to 52,635.69. The S&P 500 gained 0.38% to close at 7,572.36, while the Nasdaq Composite added 0.25% to finish at 26,273.21.
The benchmark S&P 500 finished the week up roughly 1%, while the Nasdaq also advanced more than 1%. The Dow, however, ended the week slightly lower.
SK Hynix debut lifts AI optimism
Artificial intelligence remained a key driver of market sentiment after South Korean memory-chip maker SK Hynix made its Nasdaq debut.
The company opened at $170, about 14% above its American depositary receipt offering price of $149 after raising more than $26 billion in one of the world’s largest share sales.
The listing renewed investor optimism around memory-chip makers despite recent volatility across the semiconductor sector.
Nvidia rose more than 3% on Friday, helping lead gains in the S&P 500.
Meta Platforms jumped around 6%, marking its strongest weekly performance since early 2024 after Bank of America reiterated its Buy rating.
Investor sentiment was also supported by reports suggesting Meta could improve the cost efficiency of its artificial intelligence infrastructure.
Although chip stocks have faced profit-taking in recent weeks, they remain among the year’s strongest performers.
Micron Technology has surged more than 200% in 2026, while Lam Research, Marvell Technology and Intel have all more than doubled year to date.
Global markets also reflected mixed sentiment.
South Korea’s Kospi gained 2.5%, while Japan’s Nikkei 225 rose 1.2%. China’s CSI 300 declined 1.96%, weighed down by technology and industrial stocks. Europe’s Stoxx 600 index finished little changed.
Middle East tensions remain in focus
Investors continued to monitor developments in the Middle East after renewed military exchanges between the United States and Iran earlier this week raised concerns about higher energy prices and inflation.
Market sentiment improved after President Donald Trump said Iran had requested to continue negotiations and that the United States had agreed, although he also stated that the June ceasefire was over.
Officials from Qatar and Pakistan are also working to facilitate renewed discussions between the two sides, while an administration official told MS Now that technical talks would continue despite the latest military actions.
The easing in oil prices following those developments helped support equities after Thursday’s rally.
Attention turns to earnings and inflation
Investors are now preparing for the second-quarter earnings season, which begins next week with reports from major US banks.
According to LSEG I/B/E/S data, analysts expect S&P 500 earnings to increase 24% from a year earlier, with technology companies expected to account for much of the growth.
Despite the benchmark index trading near record highs, the S&P 500’s forward price-to-earnings ratio has eased to around 20 times expected earnings from 21 times in late May, reflecting stronger corporate earnings expectations.
Markets will also closely watch next week’s US inflation report and testimony from Federal Reserve Chair Kevin Warsh before the House Committee on Financial Services for further clues on the outlook for interest rates.