US Futures Slip as SK Hynix ADRs Debut, Oil Drops on Iran Talks
US stock futures edged lower after a chip-led rally as investors brace for SK Hynix's $26.5 billion ADR debut and upcoming tech earnings, while easing US-Iran tensions pushed crude prices back to pre-conflict levels.
US stock futures dipped on Friday, 10 July, taking a pause after a strong semiconductor-driven rally pushed the S&P 500 to its highest level since mid-June. S&P 500 futures slipped 0.1%, while Nasdaq 100 and Dow Jones futures fell 0.38% and 0.21%, respectively. Despite the mild pullback, the major indices remain on track to post weekly gains.
Trading attention is firmly fixed on the Nasdaq, where SK Hynix is set to begin when-issued trading of its American depositary receipts. The memory chipmaker raised $26.5 billion in the offering, making its market debut the primary catalyst for the session in the absence of major economic data or Federal Reserve speeches. The arrival comes just as the June-quarter earnings season begins, a period the market will rely on to justify the recent recovery in chip stocks.
The focus on semiconductors highlights a stark divergence within the technology sector. While chip stocks have spearheaded Wall Street's recent advances, the Magnificent Seven have largely fallen out of favour, significantly underperforming the broader market this year. On Thursday, the Nasdaq Composite climbed 1.3% to close at 26,206.89, while the S&P 500 added 0.8% and the Dow Jones Industrial Average gained 0.3%.
Geopolitical truce cools oil prices
Outside of equities, a de-escalation in geopolitical tensions is reshaping commodity markets. Following two consecutive days of US strikes on Iran and subsequent retaliatory attacks, reports indicate Washington and Tehran will resume peace negotiations.
The tentative truce has triggered a sharp retreat in crude prices, pulling benchmarks back to levels unseen since before the conflict escalated in late February. Brent futures dropped 1% to an intraday low of $75.36 a barrel, while WTI futures declined 1.23% to $71.19. “Although fighting has eased, negotiations between the US and Iran are still ongoing. Oil traders are closely watching developments around the Strait of Hormuz, one of the world's most important shipping routes for crude oil,” Vested Finance said.
Looking further ahead, the International Energy Agency warned on Friday that the Middle East disruption will have lasting impacts. The agency forecast that global oil demand will decline in 2026 for the first time since 2020, as the Iran conflict continues to weigh on regional production and exports.
