SK Hynix surges 14% in $26.5bn Nasdaq debut as oil fears weigh on stocks

SK Hynix's American depositary receipts jumped 14% to open at $170 after pricing at $149, marking one of the largest share sales globally this year. The South Korean advanced memory chip supplier raised $26.5 billion, trailing only SpaceX's record-setting initial public offering last month.

The strong debut underscores sustained investor appetite for AI infrastructure. Hyperscalers continue to drive heavy capital expenditure on semiconductors, lifting other AI-exposed names like Meta Platforms, which gained 6.1%.

Despite these individual gains, broader US indices traded sideways, unable to sustain early momentum. The Dow Jones Industrial Average edged up 0.21% to 52,597.47, the S&P 500 added 0.13% to 7,553.35, and the Nasdaq Composite was essentially flat.

Market caution stemmed from escalating US-Iran clashes disrupting shipping in the Strait of Hormuz. Brent crude rose 0.38% to $76.59 a barrel, while WTI gained 0.24% to $72.25, stabilizing after sharp gains earlier in the week.

The confluence of rising oil prices and renewed friction sparked concerns that the Federal Reserve will maintain tighter monetary policy for longer to combat lingering inflation. This weighed on non-yielding assets, with spot gold falling 0.4% to $4,105.97 per ounce and silver dropping 1.1% to $59.34.

Further declines in precious metals could materialize if the geopolitical situation deteriorates. "Spot prices may once again test the $4,000 per ounce level for psychological support should tensions escalate further and oil prices extend their rebound," said Han Tan, chief market analyst at Bybit.

In fixed income, the 10-year Treasury yield held steady at 4.55%. Cryptocurrency-linked stocks rallied alongside bitcoin, with Strategy advancing 5% and Coinbase gaining 3.1%. Conversely, Delta Air Lines dropped 2.5% despite projecting third-quarter earnings above Wall Street expectations, as investors weighed broader industry pressures.