U.S. stocks edged higher Friday,driven by buzz around AI stocks. S&P 500 rose 0.4%,its fourth straight week of gains. Dow added 149 points,or 0.3%,and Nasdaq climbed 0.3% too.
SK Hynix stole the show. The South Korean memory chip giant's stock soared 13.1% on its Nasdaq debut. Raised about $26.5 billion selling American depositary shares at $149 each. A massive 634% stock price jump over last year,all thanks to AI-driven demand for computer memory.
But not all rosy. Concerns over AI stocks' sky-high valuations loom large. Analysts caution investments in chips,data centers may not deliver enough growth to justify such prices. This uncertainty fuels volatility in the AI sector,increasingly shaping Wall Street's moves.
Nvidia played a big role,boosting S&P 500 with a 4% stock price jump. As earnings season nears, focus shifts to how companies will tackle rising costs,inflation.
Delta Air Lines posted strong spring quarter numbers,thanks to solid customer demand,including business travelers. Yet, its stock dipped 1.8% despite a 28.2% year-to-date rise. Summer profit forecast beat expectations,but investor caution persists.
Next week,focus on major U.S. banks like Bank of America,Citigroup,JPMorgan Chase, Goldman Sachs,Wells Fargo as they roll out earnings reports. These will be key to assessing stock price sustainability.
In crypto, Circle Internet Group shares jumped 5% after regulatory nod to set up Circle National Trust bank . CEO Jeremy Allaire called it big step in blending blockchain, digital assets with U.S. financial system.
Oil market saw ups and downs amid Middle East tensions. Brent crude fell 0.4% to $76.01 per barrel, despite earlier spikes. Concerns over potential Strait of Hormuz disruptions keep prices jumpy. Geopolitical tensions high,President Donald Trump tweeted U.S. resumed Iran talks,ceasefire over.
Treasury yields ticked up slightly, with 10-year yield at 4.56% from 4.54% prior day. High yields spark global worries as central banks may hike rates to fight inflation, possibly stalling economic growth, hurting investment prices .
Globally,mixed results. South Korea's Kospi surged 2.5%, Japan's Nikkei 225 up 1.2%. But Shanghai stocks fell 1%. Global economic outlook murky with rising oil prices, inflationary pressures.
