Global stocks rose yesterday but Wall Street opened in mixed territory, as AI-related enthusiasm over the market debut of South Korean chip bellwether SK Hynix led investors to brush off tit-for-tat attacks between the US and Iran.
The Dow Jones Industrial Average was up 0.16 per cent in early trading, to 52,572.69, while the S&P 500 was mostly flat, climbing just 0.06pc to 7,548.32. The Nasdaq Composite was down 0.25pc, to 26,141.32.
While the renewed back-and-forth attacks have further eroded the fragile three-week-old US-Iran ceasefire, markets have mostly taken developments in the Middle East in their stride, although oil prices and their inflationary impact are back on investors’ radar.
European shares were muted yesterday, with the pan-European STOXX 600 up 0.17pc, remaining on track for a weekly loss that could snap a four-week winning streak. MSCI’s gauge of stocks across the globe was up 0.22pc. Japan’s bond market and currency lurched higher after Finance Minister Satsuki Katayama said yesterday the government wants to explore ways to encourage pension funds, including the Government Pension Investment Fund, to increase their holdings of domestic financial assets.
Brent crude futures were set for a 5pc week-on-week rise, the strongest weekly performance since early May. But at $76.25 per barrel, down 0.1pc on the day, Brent has given up most of the gains it picked up when the conflict began at the end of February. US crude fell 0.39pc to $71.80 a barrel.
“Oil prices have also remained remarkably calm despite the conflict spilling over (once again) into some neighbouring countries,” said BMO Senior Economist Carl Campus in a note.
“While there are several factors that could be helping prevent a bigger surge ... perhaps it’s simply a reflection of the underlying optimism regarding ongoing talks.”
Attention is on SK Hynix’s US market debut after the firm priced its American Depositary Receipts at $149 on Thursday, raising about $26.5 billion, indicating strong investor appetite to gain exposure to the AI supply chain. The blockbuster offering, which will finance new factories and equipment to meet surging AI chip demand, is set to be the world’s second-biggest share sale after SpaceX’s record-breaking IPO last month.
SK Hynix’s US-listed shares were indicated to jump 20 pc in their Nasdaq debut following its $26.5 billion share sale, signalling strong enthusiasm in semiconductor stocks despite a recent pullback.
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