Stocks Eke Out Gains as SK Hynix Rallies in Debut: Markets Wrap
(Bloomberg) — Wall Street traders drove stocks mildly higher in the countdown to the earnings season, with SK Hynix Inc. jumping in its debut and the market parsing the latest geopolitical developments.
In the final stretch of a week of gains for equities, the S&P 500 edged up. American depositary receipts of the giant South Korean memory chipmaker climbed 15% above their offering price after a blockbuster share sale. Oil briefly rose when President Donald Trump said the US considers the ceasefire with Iran to be over, but resumed its drop as he noted talks would continue.
“The muted reaction to the re-escalation of Iran tensions this week is prime evidence that the market is looking past geopolitical tensions,” said Clark Bellin at Bellwether Wealth. “While the stock market is gearing up for another strong earnings season, expectations are higher.”
Investors are justifiably in wait-and-see mode ahead of earnings, according to Mark Hackett at Nationwide. The backdrop remains supportive, but some are concerned that expectations have become elevated and will likely wait for confirmation before pushing the market sustainably higher, he added.
“While there are pockets of the market exhibiting lottery-like behavior, the broader market remains sober and skeptical,” Hackett said. “It is far from the kind of complacency that typically leads to a sustained drawdown.”
The second-quarter earnings season will be about justifying the premium valuations investors have already assigned to the companies, according to Kenny Polcari at SlateStone Wealth.
“The street has priced in exceptional earnings growth, and now management teams have to prove those expectations were warranted,” he said.
What’s interesting this quarter, Polcari noted, is that we haven’t seen the usual wave of warnings. In fact, more S&P 500 companies have issued positive than negative guidance — a departure from the historical pattern.
“That tells me management teams are either genuinely confident or confident enough not to reset expectations ahead of reporting,” he said.
Another aspect of the upcoming results is that expectations are elevated, but “concentrated,” according to Nicole Inui at HSBC. Most of the expected earnings growth comes from a handful of sectors where visibility is high, she said.
“Despite lofty expectations, we are not worried,” Inui added.
Corporate Highlights:
Meta Platforms Inc. climbed after research firm SemiAnalysis posted a positive report on the social media giant’s AI compute business. Delta Air Lines Inc. reaffirmed its full-year profit guidance and said strong demand for premium, corporate and international travel helped offset the highest quarterly fuel expense in its history. Boeing Co. formally opened its fourth 737 Max assembly line near Seattle on Friday, as the US planemaker looks to cash in on its growing backlog, though output from the factory will initially be at a low rate. EasyJet Plc received an offer from private equity firm Apollo Global Management for 715 pence a share that beats a rival proposal from Castlelake LP, a surprise twist in the takeover saga that sets up a possible bidding war between the two US investment funds. Circle Internet Group Inc. received approval to start a national digital-currency trust bank to support its stablecoin business, widening its remit to include institutional custody services while consolidating oversight under a single federal trust charter. What Bloomberg Strategists say…
“This week’s semiconductor bounce shows broader price action is again being driven by positioning and by micro sector- and factor-level narratives rather than by a dominant macro narrative.”
—Michael Ball, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.3% as of 2 p.m. New York time The Nasdaq 100 rose 0.3% The Dow Jones Industrial Average rose 0.3% The MSCI World Index rose 0.3% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro fell 0.1% to $1.1418 The British pound was little changed at $1.3401 The Japanese yen rose 0.5% to 161.62 per dollar Cryptocurrencies
Bitcoin rose 0.9% to $63,811.77 Ether rose 2.3% to $1,787.55 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.57% Germany’s 10-year yield declined two basis points to 3.07% Britain’s 10-year yield declined three basis points to 4.87% Commodities
West Texas Intermediate crude fell 1.3% to $71.15 a barrel Spot gold fell 0.5% to $4,101.71 an ounce ©2026 Bloomberg L.P.
