Closing Bell: Markets Higher as Tech Strength Offsets Oil Price Risk

Stocks finished higher Friday as investors rotated back into technology and semiconductor names.

The S&P 500 (SPX) rose 0.4% to 7,575.39, while the tech-heavy Nasdaq advanced 0.3% to 26,281.61. The Dow Jones Industrial Average ($DJI) gained 149.60 points, or 0.3%, to 52,637.01.

Large-cap technology names led Friday's gains. For the week, Federal Reserve policy and the outlook for interest rates was a backdrop, with limited information to parse from FOMC minutes; new Fed Chairman Kevin Warsh named leaders to committees that could reform the central bank. The semiconductor space, meanwhile, recovered from recent volatility, and oil prices retreated.

Three things to watch from today's market:

SK Hynix Makes Nasdaq Debut: South Korean memory-chip giant SK Hynix began trading on the Nasdaq Friday with the temporary ticker SKHYV, which is transitioning to SKHY. The shares opened at $170 after the American Depositary Receipts (ADRs) priced at $149. The company is a leading supplier of high-bandwidth memory used in AI systems. Analysts and investors discussed Friday where SK Hynix fits in the AI trade as memory demand surges.

Tech Stocks Among the Leaders, and the Laggards: Meta Platforms (META) was the top S&P 500 performer Friday, up 6%, followed by Weyerhaeuser (WY), SBA Communications (SBAC), and Nvidia (NVDA), each up about 4%. AI-linked technology stock performance offset weakness elsewhere. Shares of Moderna (MRNA) slumped nearly 11% Friday, marking the S&P’s worst performance. CrowdStrike Holdings (CRWD) was right behind, down 5.7%, followed by Datadog (DDOG), off by 4.3%. Other tech decliners Friday: Palo Alto Networks (PANW), down 3.7%, Dell Technologies (DELL) down 3.3%.

Oil Slides After Spike: The U.S. benchmark price of crude was off about 1% to $71.50 Friday, but up more than 4% on the week as Middle East intermediaries called the U.S. and Iran to the negotiating table. In the U.S., with the intertwining of energy and technology, Rob Thummel, Senior Portfolio Manager at Tortoise Capital sees “electricity as the new oil” and notes that natural gas is increasingly generating electricity. Tortoise Capital, an energy-focused asset manager, points to the possibility that AI infrastructure annual capital expenditure estimates could reach $3 trillion to $4 trillion by 2030.

No economic events of note on Monday, July 13

Earnings:

• Premarket Monday: n/a
• Postmarket Monday: AERO, FBK

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